Crypto Analytical Company: Critical Metric in BTC

According to data from Glassnode, Bitcoin has started to reach new lows. This shows the options markets expect Bitcoin to maintain price stability. As for traders behavior, at the time of writing, about 27,000 Bitcoin options were approaching their expiration date, with a buy and sell ratio of 0.64. A buy/sell ratio of 0.64 indicates a higher ratio of open call options. This indicates that market sentiment is leaning towards price increase expectations.

Expired options collectively have a notional value of $720 million, indicating a significant market share. However, spreads on Binance, which are currently around 20 times wider than Coinbase and Kraken, could affect BTC in the long run. The wide spreads indicate a larger difference between the buy and sell prices of BTC on Binance compared to Coinbase and Kraken. This can mean lower liquidity on Binance, making it more difficult for investors to enter and exit positions efficiently. Decreased liquidity could lead to increased price volatility and potentially affect the stability of BTC.

Additionally, wider spreads typically result in higher transaction costs for market participants. Investors who need to buy or sell BTC may incur more expenses due to the larger price difference between the buy and sell prices. Over the past week, the price of BTC has dropped significantly. Combined with this, BTC’s pace has plummeted, indicating a drop in activity. Additionally, interest in Bitcoin’s NFTs has plummeted, as evidenced by falling NFT transactions on the network.