- $2.7 billion worth of Bitcoin and Ether options are due for expiry on May 24, indicating crucial market sentiments.
- A put/call ratio of 0.88 for Bitcoin suggests a balanced but slightly bullish outlook among traders.
- Ether options also show a bullish sentiment with a 0.58 put/call ratio, hinting at optimism following ETF developments.
As the cryptocurrency market braces for the expiry of approximately $2.7 billion in Bitcoin and Ether options on May 24, traders and analysts are keenly observing the potential impacts on market sentiment and pricing dynamics.
Balanced Sentiments in Bitcoin Options
According to data from Greeks.live shared on the social media platform X, 21,000 Bitcoin options are nearing their expiry date. The put/call ratio, standing at 0.88, reflects a near-even split between buyers opting for puts and calls, with a slight leaning towards calls. This indicates a cautiously optimistic sentiment among Bitcoin traders. The maximum pain point for these options is pegged at $67,000, where the aggregate position of options holders would incur the most significant financial loss, underscoring the critical stakes involved.
In a broader perspective, a more considerable options expiry looms on May 31, with $4.3 billion worth of contracts set to conclude. This includes a notable concentration of long positions, particularly at the $70,000 strike price, amounting to $830 million in open interest (OI). Additionally, the $100,000 strike price also shows significant interest, with $843 million in OI, suggesting a bullish outlook from a segment of the market. Conversely, the $60,000 strike price is a hotspot for put contracts, with $388 million in OI, indicating areas of concern or hedging strategies by bears.
Ether Options Signal Bullishness Amid ETF Hopes
Turning to Ether, the scenario appears slightly more bullish. The upcoming expiry of 350,000 contracts, with a total notional value of $1.3 billion, is characterized by a lower put/call ratio of 0.58. This suggests a stronger inclination towards call options, reflecting optimism possibly spurred by recent advancements in Ether-related ETFs. The maximum pain point for Ether options is set at $3,200, highlighting the price level that could lead to significant losses for a large number of option holders.
The crypto market’s recent dynamics have been influenced by Ethereum’s leadership in a rally, further fueled by ETF developments, leading to a notable 20% increase in a single day. However, maintaining high implied volatility (IV) levels remains a challenge, suggesting that traders might consider calendar spreads as a more strategic approach given the current market conditions.
Implications of Option Expiries on Market Dynamics
These impending option expiries offer valuable insights into trader expectations and potential market movements. While Bitcoin shows a balanced sentiment among traders, Ether’s market appears more decisively bullish. As these options reach their expiry, the realignment of positions could lead to increased volatility and significant price movements, depending on how closely actual market prices align with strike prices heavily populated with open interests.
