Ethereum

Bitcoin

Impact

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<p style="text-align: justify">You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/bitcoin-and-ethereum-options-expire-and-impact-market-sentiment/" data-wpel-link="internal">Bitcoin and Ethereum Options Expire and Impact Market Sentiment</a><br></p>
<p class="p1" style="text-align: justify">Approximately $2.7 billion worth of Bitcoin and Ethereum options will expire on May 24, providing valuable insights into <a href="https://en.coin-turk.com/expanding-the-crypto-horizon-bithumb-introduces-new-trading-pairs-in-south-korea/" data-wpel-link="internal">crypto </a><a href="https://finance.coin-turk.com/" data-wpel-link="exclude">market</a> sentiment. According to a post by Greeks live on X, 21,000 Bitcoin options are set to expire with a put/call ratio of 0.88. This indicates an almost equal balance between buyers and sellers, with a slight tilt towards call options.</p> 
<h2 class="p1" style="text-align: justify" id="futures-market-and-bitcoin">Futures Market and Bitcoin</h2> 
<p class="p1" style="text-align: justify">Meanwhile, the maximum liquidation point, representing the price at which most option buyers would incur losses, is at $67,000, corresponding to a nominal value of $1.4 billion. While the expiration of 21,000 contracts is noteworthy, it pales in comparison to the significantly larger event on May 31, when $4.3 billion worth of options will expire, as reported by Deribit.</p> 
<p class="p1" style="text-align: justify"><strong>Deribit</strong> <a href="https://newslinker.co/category/ai/" target="_blank" rel="noopener" data-wpel-link="exclude">data reveals</a> that long positions predominantly control open interest (OI), with a significant amount of $830 million tied to the $70,000 strike price. Moreover, higher strike prices, particularly at the $100,000 level, have substantial OI of $843 million, indicating bullish sentiment among traders.</p> 
<p class="p1" style="text-align: justify">With an open interest of $388 million, the $60,000 strike price stands out as the most notable for put contracts. This significant <strong>OI</strong> indicates that many contracts remain unresolved, and the open interest represents the unresolved value of contracts waiting to be settled, revealing that bulls are confident in much higher Bitcoin prices.</p> 
<p><img loading="lazy" loading="lazy" decoding="async" class="aligncenter wp-image-355314" src="https://coin-turk.com/wp-content/uploads/2024/05/greeks-1.png" alt="" width="500" height="428"></p> 
<h2 class="p1" style="text-align: justify" id="details-attract-attention">Details Attract Attention</h2> 
<p class="p1" style="text-align: justify">The options expiration event is not limited to Bitcoin; significant 350,000 Ethereum contracts representing a notional value of $1.3 billion are also expiring. A put/call ratio of 0.58 and a maximum liquidation point of $3,200 indicate a slightly bullish tone, with more call options expiring than put options.</p> 
<p class="p1" style="text-align: justify">According to Greeks live’s report, <strong>Ethereum</strong> recently led a crypto rally with a one-day 20% increase, inspired by progress in the ETF application process. Short-term options show that implied volatility (IV) reached 150% at one point, significantly higher than Bitcoin’s current IV during the same period.</p> 
<p class="p1" style="text-align: justify">However, the difference between Bitcoin and Ethereum is now evident. While Ethereum’s bullish sentiment remains strong, maintaining high IV levels for each main period is challenging from a market trade and structure perspective. This suggests that calendar spreads might be a better choice. In contrast, <strong>Bitcoin</strong> appears more balanced between long and short positions, with stronger call selling power.</p> 
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on COINTURK NEWS: </span> <a href="https://en.coin-turk.com/bitcoin-and-ethereum-options-expire-and-impact-market-sentiment/" data-wpel-link="internal">Bitcoin and Ethereum Options Expire and Impact Market Sentiment</a></h5>

Bitcoin and Ethereum Options Expire and Impact Market Sentiment

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