Deribit Data Reveals $2.2B Worth of Bitcoin Options Set to Expire on May 26
As the crypto market enters a crucial phase, Bitcoin and Ethereum traders are closely monitoring the imminent expiry of a significant number of options contracts. According to Deribit data as of May 23, approximately 85,000 Bitcoin options and 700,000 Ethereum options are set to expire on May 26. This event is expected to bring short-term volatility to both cryptocurrencies, potentially impacting the broader industry.
Bitcoin, the leading cryptocurrency, currently exhibits a Put Call Ratio of 0.38, indicating a higher number of bullish bets. However, market participants have identified the maximum pain point for Bitcoin to be near the $27,000 mark. The significance of this level suggests that it could act as a key support or resistance area, leading to intensified price movements.
When converted into dollars, the total value of the Bitcoin contracts up for expiry reaches an astonishing $2.2 billion. This considerable figure further underscores the significance of the upcoming event and the potential impact it may have on the market. Traders and investors will be closely watching to see how the expiry of these options contracts influences Bitcoin’s price trajectory.
Meanwhile, Ethereum, the second-largest cryptocurrency, has a Put Call Ratio of 0.49, indicating a slightly higher proportion of bearish sentiment compared to Bitcoin. Approximately 700,000 Ethereum options are set to expire on May 26, which places a notional value of just over $1.2 billion on these contracts. Traders are paying particular attention to the max pain price, which is estimated to be $1,800 for Ethereum. This level could act as a focal point for market movements and potentially influence the short-term volatility of the cryptocurrency.
With both Bitcoin and Ethereum options nearing expiration, market participants are bracing for potential turbulence in the coming days. The expiry of these contracts has the potential to create short-term price fluctuations that could reverberate throughout the entire crypto industry. Traders, investors, and enthusiasts will be closely monitoring the market to gauge the effects and adapt their strategies accordingly.
It is important to note that options expiry events often bring heightened uncertainty and increased trading activity. As traders close their positions or roll them over into new contracts, market dynamics can shift rapidly, resulting in amplified volatility. The outcome of this expiration event could provide valuable insights into the sentiment and future direction of the cryptocurrency market.
In conclusion, Bitcoin and Ethereum are on the brink of a significant event as thousands of options contracts approach their expiration on May 26. The substantial figures involved, with BTC contracts valued at around $2.2 billion and ETH contracts at over $1.2 billion, add to the anticipation of short-term volatility.
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