Bitcoin and Ethereum struggle with declining price volatility as options traders turn bearish


  • Bitcoin and Ethereum options traders turn bearish, buying more puts than calls.
  • The PCR is between 0.7 and 1 and signals a bearish trend in the two largest cryptocurrencies by market capitalization.
  • Ethereum price is struggling to sustain above the $1,800 level with implied volatility of each major term continuing to decline.

Bitcoin (BTC) and Ethereum (ETH) price volatility has declined and options traders have turned bearish on the two largest assets in the crypto space. Ethereum price is battling resistance to stay above $1,800 with an increasing bearish outlook from ETH traders.

Also read: CFTC Chair says DeFi crypto exchanges can be regulated, here’s the good, the bad and the ugly of regulation

Bitcoin, Ethereum Put Call Ratio turns bearish

The Implied Volatility (IV) is the metric that forecasts the range in which traders expect an asset’s price to likely move. IV is low for both Bitcoin and Ethereum. Greeks Live, a cryptocurrency options trading firm, notes that BTC and ETH options traders are bearish and Ethereum's implied volatility has declined to a record low. 

BTC Options

ETH Options

Bitcoin and Ethereum options trading data

Greeks Live reported that 29,000 Bitcoin options with a notional value of $780 million are about to expire on Friday and the Put Call Ratio (PCR) for BTC is 0.81. The maximum pain point is $27,500. 

BTC is trading at $26,900 at press time. For Ether, the PCR is 0.96, and the maximum pain point is $1,800. Ether is trading at $1,808 at press time.

Typically, a PCR between 0.7 and 1, signals that traders are buying more puts than calls and the overall outlook on the asset is bearish. This also signals an opportunity for traders to buy “cheaper calls” as market participants are unable to pick a direction in which Bitcoin and Ethereum prices are most likely to move. After the continuous sideways trading in BTC and ETH over the past week, the number of bearish trades has gradually increased.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

US presidential election outcome could shape the future of crypto

US presidential election outcome could shape the future of crypto

US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).

More Cryptocurrencies News
Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.

More Bitcoin News
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.

More Ripple News
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.

More Ethereum News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP