With the Fed’s Interest Rate Decision Just Days Ahead, Options Day Has Arrived! What Does the Data Signal for Bitcoin (BTC) and Ethereum (ETH)?

The Fed is almost certain to cut interest rates after this week’s release of US economic data. At this point, a 25 basis point cut is priced in at 92.7%, while a 50 basis point cut is priced in at 7.3%.

While Bitcoin, Ethereum and altcoins are moving upwards with only a few days left until the FED’s interest rate decision, the expiration date for option contracts in the crypto market has come today, as it does every Friday.

According to data for the second week of September, $3.4 billion worth of Bitcoin and $850 million worth of Ethereum options will expire on September 12 on the Deribit derivatives exchange.

Accordingly, the Put/Call Ratio of BTC options is 1.31, the maximum loss point is $113,000 and the notional value is $3.42 billion.

When we look at Ethereum, ETH options have a Put/Call Ratio of 1.02, a maximum loss point of $4,400, and a notional value of $850 million.

Looking at the put/call ratio, we see that it’s 1.31 for Bitcoin and 1.02 for ETH. These ratios indicate that sell orders outnumber buy orders for both BTC and ETH, indicating that options traders are bearish and positioning themselves against a potential decline.

At this point, experts say that less than $125 million in open put interest on Deribit is pegged at $114,000 or higher. At this point, if Bitcoin manages to hold above $113,000 by Friday’s expiration, more than $300 million in call contracts will be activated. This would provide a $175 million advantage for call buyers and could provide the fuel needed for Bitcoin to continue its upward trend.

Bitcoin continues to trade at $115,200, while Ethereum is at $4,530.

*This is not investment advice.

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