On May 24, approximately $2.7 billion in Bitcoin and Ethereum options will expire, providing critical insights into the sentiment of the cryptocurrency market. According to a report by Greeks.live, 21,000 Bitcoin options are set to expire, featuring a put/call ratio of 0.88, which reflects a near-equal distribution between buyers and sellers with a slight preference towards call options.
Futures Market Impact
The maximum liquidation point, where most option buyers would incur losses, is at $67,000, with a nominal value of $1.4 billion. However, this expiration event is overshadowed by a larger event on May 31, when $4.3 billion worth of options are set to expire, as reported by Deribit. Deribit data shows that open interest is predominantly controlled by long positions, with $830 million tied to the $70,000 strike price.
Why is Ethereum Attracting Attention?
Moreover, the $100,000 strike price has substantial open interest amounting to $843 million, indicating strong bullish sentiment among traders. A significant open interest of $388 million at the $60,000 strike price suggests many put contracts remain unresolved, illustrating the market’s confidence in higher Bitcoin prices.
The expiration event also includes 350,000 Ethereum contracts worth $1.3 billion. The put/call ratio of 0.58 and a maximum liquidation point of $3,200 suggest a slightly bullish outlook, with more call options expiring than put options. Recently, Ethereum led a crypto rally, spiking 20% in one day due to progress in the ETF application process.
User-Usable Inferences
- Bitcoin’s maximum liquidation point is at $67,000, affecting $1.4 billion in options.
- Ethereum’s put/call ratio of 0.58 indicates a bullish sentiment.
- The $70,000 and $100,000 strike prices for Bitcoin have substantial open interest, indicating strong bullish sentiment.
- Ethereum experienced a 20% one-day increase, influenced by ETF application progress.
- May 31 will see a larger options expiration event worth $4.3 billion.
However, the differences between Bitcoin and Ethereum are becoming more evident. Ethereum’s bullish sentiment has led to higher implied volatility levels, making calendar spreads a potentially better strategy. Conversely, Bitcoin maintains a balanced position between long and short positions, with stronger call-selling power. This divergence underscores the distinct market dynamics of the two leading cryptocurrencies.