Future

Bitcoin

Higher

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Bitcoin and Ether options worth roughly $2.7 billion are due to expire on May 24, providing insight into crypto market sentiment.</li>
 <li>21,000 Bitcoin options and 350,000 Ether contracts are set to expire, indicating a balance between buyers and sellers.</li>
</ul>
<p>The crypto market is bracing for the expiration of Bitcoin and Ether options worth about $2.7 billion on May 24. This event is expected to offer valuable insights into the sentiments of the crypto market.</p>
<h2 id="bitcoin-options-expiry">Bitcoin Options Expiry</h2>
<p>Greeks.live reports that 21,000 <a href="https://crypto.ro/en/cryptocurrencies/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin (BTC)</a> options are on the brink of expiration. The put/call ratio stands at 0.88, suggesting a near-even balance between buyers and sellers, with a slight lean towards call options. The maximum pain point, the price at which most option buyers would incur losses, is pegged at $67,000. This represents a nominal value of $1.4 billion.</p>
<p>While the impending expiration of the 21,000 contracts is significant, it is dwarfed by the larger event on May 31. On this date, options worth an astounding $4.3 billion are set to expire.</p>
<h2 id="market-sentiment-and-future-predictions">Market Sentiment and Future Predictions</h2>
<p>Data shows that long positions dominate open interest (OI), with a hefty $830 million tied to the $70,000 strike price. Higher strike prices also have substantial OI, notably $843 million at the $100,000 mark, suggesting a bullish tendency among traders. The $60,000 strike price, with $388 million in open interest, is the most notable for put contracts.</p>
<p>This substantial OI indicates a large number of unsettled contracts, suggesting that bulls anticipate much higher Bitcoin prices.</p>
<p>The options expiry event also impacts Ethereum, with a significant 350,000 <a href="https://crypto.ro/en/cryptocurrencies/ethereum/" rel="noopener noreferrer nofollow">Ether (ETH)</a> contracts due to expire. These contracts represent a notional value of $1.3 billion. The 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.</p>
<p>Ethereum recently led the crypto rally, inspired by ETF progress, with a one-day 20% rise. The short-term options implied volatility (IV) reached 150% at one point, significantly higher than Bitcoin’s current IV for the same period. However, maintaining high IV levels for each major term is challenging, suggesting that calendar spreads may be a better choice. Meanwhile, Bitcoin appears more balanced between long and short positions, with stronger selling call forces.</p>

$2.7 Billion in Bitcoin and Ether Options Nearing Expiry: What to Expect?

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