Both Bitcoin and Ethereum are trading above their respective maximum pain points. However, as the assets approach these critical price levels, traders may witness increased buying or selling pressures, influencing market sentiment.
Today, the crypto market is on high alert as approximately $8.12 billion in Bitcoin (BTC) and Ethereum (ETH) options contracts are set to expire on May 31. This major event could lead to significant market fluctuations as traders and investors respond to the expirations.
Bitcoin and Ethereum Options Overview
Data from Deribit revealed that a total of 261,390 BTC options contracts, valued at $4.65 billion, are due to expire today.
These contracts exhibit a put-to-call ratio of 0.6, indicating a prevailing bullish sentiment among traders, with more bets on price increases (calls) than decreases (puts).
The maximum pain point for Bitcoin options expiring today is set at $65,000. This critical price level represents the point at which the most option holders could incur financial losses, making it a key level to monitor for traders.
In addition, 2,750,922 Ethereum options contracts, totaling approximately $3.47 billion, are also set to expire today.
These contracts have a put-to-call ratio of 0.85, showing a relatively balanced outlook with a slight preference for call options. The maximum pain point for Ethereum options is $3,300.
Comparative Analysis and Market Impact
Today’s options expiry dwarfs the previous week’s events, where a combined total of 375,000 BTC and ETH options contracts expired. These trenches valued at nearly $3 billion could be said to have contributed to the market decline earlier in the week.
The crypto market has seen a significant decline this week with the global market cap currently standing at $2.52 trillion showing a 0.39% increase over the last day.
In the past 24 hours, total crypto market volume reached $73.81 billion which makes a 10.54% decrease from previous values. Bitcoin’s dominance is currently standing at 53.00%, up by 0.03% over the day.
While it is unclear how the options contracts expiring today could affect the market, traders are advised to brace up for potential movements.
Currently, both Bitcoin and Ethereum are trading above their respective maximum pain points. However, as the assets approach these critical price levels, traders may witness increased buying or selling pressures, influencing market sentiment.
Outstanding Crypto Options Positions
Deribit’s data also provided insights into outstanding BTC positions yet to expire. Long positions have strike prices ranging from $70,000 to $100,000, with a total value of $886 million. Conversely, short positions with a strike price of $60,000 have the highest open interest at $519 million, indicating bullish sentiment among derivatives traders, anticipating further price increases.
The total notional value of all outstanding BTC options contracts currently stands at approximately $19 billion, highlighting the substantial interest and activity in the crypto derivatives market.
next