According to options data, a significant number of Bitcoin (BTC) and Ethereum (ETH) options are set to expire today, adding to the existing weakness in the crypto markets. The data, provided by Greeks.live, reveals that there are approximately 18,000 BTC options and 280,000 ETH options facing expiration. These options represent a total value of $2 billion.
Options are financial contracts that give investors the right to buy or sell an asset at a specific time and price, without obligating them to do so. The expiration of these options is influenced by historical data and market sentiment, as highlighted by Geeks Live.
In the BTC options market, the put call ratio is 0.64, indicating a higher bullish sentiment among investors. The max pain point, which is the price at which options holders would experience the most financial pain, is $62,000. This suggests that there could be a convergence of options value around this price level. The total value of expiring BTC options is $1.2 billion.
In the ETH options market, the put call ratio is slightly higher at 0.74, indicating a preference for bullish positions. The max pain point for ETH options is $3,050, implying a potential pull towards this price level upon expiration. The cumulative value of expiring ETH options is $800 million.
The expiration of these options coincides with a dip in the crypto markets and declining trading volumes. Last week, the notional value of expiring BTC and ETH options was $2.4 billion, while two weeks ago, it was as high as $9.3 billion.
The recent outflows experienced by the Bitcoin ETF in April have contributed to the market’s fragility and low investor confidence. Although the outflows have diminished, the trading structure and block trade activities indicate a persisting price fragility.
Market sentiment is reflected in the downward trend of implied volatility (IV) levels, which are currently below the mean watermark. Despite the market weakness, Bitcoin has seen a 3% increase in the last 24 hours, trading at $63,250. Ethereum has also gained 1.8% within the same timeframe, reaching $3,025.
It’s important to note that this article is for informational purposes only and should not be considered as financial advice. The opinions expressed in this article are solely those of the author and do not reflect the views of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses incurred.
