$8.2B in Bitcoin and Ether Options Expires, Here’s How It’s Impacting the Markets
On May 31, 69,000 Bitcoin options ended at $4.7 billion and 920,000 Ether options ended at $3.5 billion. The expiration date of crypto options contracts has historically been linked to price volatility in the crypto market.
According to Derbit data, the put/call ratio of expiring Bitcoin (BTC) options is 0.61. This means that more calls (or long contracts) expire than puts (or shorts). On the other hand, Ether (ETH) options had a call ratio of 0.46.
The call ratio (PCR) is a technical indicator that reflects the sentiment of the trading market. A PCR below 0.7 is considered a strong bullish sentiment, while a PCR above 1 is considered a strong bearish sentiment.
Maximum pain for Bitcoin at $66,000, ETH at $3,300
The highest pain point for bitcoin with leveraged traders is $66,000. For ETH, the maximum pain point is $3,300. BTC is currently trading at $68,210, $2,000 above the pain point, and ETH is trading at $3,738, $400 above the pain point.
Millions with open interest (OI) are in long positions and the strike is at $70,000, $75,000, $80,000 and even $100,000. Open interest refers to the total number of outstanding contracts.
A few traders have placed long positions on Bitcoin at a price of $100,000. At this strike price of $886 million in open interest (OI), the number of long positions looks significant. The total notional value of all BTC options contracts is $19 billion.
RELATED: Coinbase BTC Supply Hits 9-Year Low Bitcoin Price Returns to $70K
Post-Spot ETH Approval Hanger
The approval of the ETH ETF by the Securities and Exchange Commission (SEC) in May was a big and big event for the crypto market. ETH prices rose 20% in May in anticipation of the approval. However, the SEC has only approved the 19b-4 filing, so the actual business listing is delayed.
Since the approval of the ETH ETF, the crypto market has seen sideways movement, with ETH stuck below $4,000 and BTC below the $70,000 price barrier. Currently, the crypto market is experiencing bearish momentum as it corrects bullish surges from the past two weeks.
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