Crypto News Today- Bitcoin and Ether options worth $2.7 billion are approaching expiration

$2.7B worth of Bitcoin and Ether options set to expire soon

Crypto News– Around $2.7 billion worth of Bitcoin and Ether options are slated to expire on May 24, offering key insights into market sentiment. According to a post by Greeks.live on X, there are 21,000 Bitcoin options with a put/call ratio of 0.88, indicating a relatively balanced stance between buyers and sellers, albeit with a slight lean towards call options. The maximum pain point, where most option buyers would face losses, is identified at $67,000, totaling $1.4 billion.

While the impending expiry of 21,000 contracts is significant, it’s dwarfed by the mammoth event anticipated on May 31, with a whopping $4.3 billion in options set to expire, as per Deribit. Deribit’s data underscores that long positions hold sway in terms of open interest (OI), particularly with a hefty $830 million linked to the $70,000 strike price. Additionally, higher strike prices show substantial OI, notably $843 million at the $100,000 mark, signaling a bullish sentiment among traders. The $60,000 strike price stands out for put contracts, boasting $388 million in open interest.

Options Expiry Insights: Bitcoin and Ethereum Show Divergence in Market Sentiment

With a substantial Open Interest (OI), indicating many unsettled contracts, bulls are displaying confidence in significantly higher Bitcoin prices, as OI represents the unresolved value of contracts awaiting settlement.

Not limited to Bitcoin, the options expiry event encompasses a significant 350,000 Ether contracts, valued at $1.3 billion. A put/call ratio of 0.58 and a max pain point of $3,200 suggest a slightly bullish tone, with more call options expiring than put options.

According to Greeks.live’s report, Ethereum recently led the crypto rally, driven by ETF progress, experiencing a one-day surge of 20%. Short-term options implied volatility (IV) reached 150% at one point, surpassing Bitcoin’s current IV for the same period.

However, a clear divergence between Bitcoin and Ethereum is now apparent. While Ethereum maintains strong bullish sentiment, sustaining high IV levels for each major term poses challenges from the perspective of overall market trading and market structure.

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