Millions

Bitcoin

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Bitcoin options worth $4.7 billion and Ether options worth $3.5 billion expired on May 31.</li>
 <li>The expiration of these crypto options contracts often leads to price volatility in the cryptocurrency market.</li>
</ul>
<p>On the last day of May, a substantial number of Bitcoin and Ether options contracts expired. These contracts were valued at $4.7 billion for Bitcoin and $3.5 billion for Ether. The termination of these contracts typically triggers fluctuations in digital currency prices.</p>
<h2 id="understanding-the-put-call-ratio">Understanding the Put/Call Ratio</h2>
<p>The Derbit data revealed that the put/call ratio for the expired <a href="https://crypto.ro/en/cryptocurrencies/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin</a> (BTC) options stood at 0.61. This indicates that more long contracts expired than shorts. Conversely, the put/call ratio for <a href="https://crypto.ro/en/cryptocurrencies/ethereum/" rel="noopener noreferrer nofollow">Ether</a> (ETH) options was 0.46.</p>
<p>The put/call ratio serves as a technical indicator of market sentiment among traders. A ratio below 0.7 denotes strong bullish sentiment, while a ratio above 1 signifies strong bearish sentiment.</p>
<h2 id="maximum-pain-points">Maximum Pain Points</h2>
<p>For Bitcoin, the maximum pain point, where leverage traders would incur the most losses, was set at $66,000. For Ether, this point was $3,300. At the time, Bitcoin was trading $2,000 above its pain point at $68,210, while Ether was trading over $400 above its pain point at $3,738.</p>
<p>Millions in open interest (OI) were in long positions with strike prices at $70,000, $75,000, $80,000, and even $100,000. Open interest refers to the total number of unsettled outstanding derivative contracts. Some traders had placed long positions on Bitcoin with a target price of $100,000. With $886 million in open interest at this strike price, the number of long positions seemed significant. The total notional value of all outstanding Bitcoin options contracts was $19 billion.</p>
<h2 id="market-reaction-post-spot-eth-approval">Market Reaction Post-Spot ETH Approval</h2>
<p>The spot Ether ETF approval by the Securities and Exchange Commission (SEC) in May was a significant event for the cryptocurrency market. Ether prices increased by 20% in May in anticipation of the approval. However, the SEC only approved the 19b-4 filing, thus postponing the actual listing for trading.</p>
<p>Following the Ether ETF approval, the cryptocurrency market has exhibited a bearish sideways movement, with Ether stuck below $4,000 and Bitcoin below the $70,000 price barrier. Currently, the market is experiencing a bearish momentum, correcting from the bullish surge of the past two weeks.</p>

Implications of $8.2B Bitcoin and Ether Options Expiry on Crypto Markets

Inhaltsverzeichnis

crypto.ro global

Weitere Artikel, die am 31. Mai 2024 veröffentlicht wurden

Breaking: DMMBitcoin Exchange Faces Hack, $300M in Bitcoin at Risk

Jasmy coin price prediction: What’s next after the +25% range-breakout?

The Top Crypto Presale In 2024 Is Set To Reach The Stars With 15000% ROI As MATIC & LINK Are Stuck

Dogecoin Mobile P2E Meme Coin Competitor PlayDoge Price To Skyrocket 170x, Lowest Ever Presale Pr...

Ripple (XRP) Troubles Remain Despite Steady Whale Accumulation

The Rise and Risks of Re-staking

Abonniere unseren kostenlosen Newsletter und erhalte tägliche Krypto-Updates!