Bitcoin and Ethereum options with a value of $2 billion poised to expire today

Options data reveals that 18,000 Bitcoin (BTC) options and 280,000 Ethereum (ETH) worth $2 billion are set to expire today as weak crypto markets persist.
Options data for May 10 reveals significant impending expirations in the cryptocurrency market,
according
to Greeks.live. For context, options are financial contracts conferring transactional rights but not obligations to investors at a specific time and rate.
As disclosed in a recent post from Geeks Live, approximately 18,000 Bitcoin (BTC) options and 280,000 Ethereum (ETH) options are facing expiration, with metrics indicating influence from historical data and market sentiment.
– Advertisement –
The
BTC
options market has a put call ratio of 0.64, signaling increased bullishness. Moreover, the max pain point stood at $62,000, indicating a potential convergence of options value around this price level. The collective notional value of these expiring BTC options amounts to $1.2 billion.
Meanwhile, the ETH options market shows a put call ratio of 0.74, suggesting a slightly higher preference for bullish positions. At $3,050, the max pain point implies a potential pull towards this price level upon expiration. Furthermore, the cumulative notional value of expiring
ETH
options totals $800 million.
Market Displays Weakness as Volumes Decline
This data mirrors the dip and declining volumes witnessed by crypto markets throughout the week. Geeks Live confirms that notional value of expiring BTC and ETH options last week stood at $2.4 billion, while the
figure
for two weeks ago was a whopping $9.3 billion.
– Advertisement –
Recall that the Bitcoin ETF recently recorded massive outflows in April. While the
outflows
experienced by the US BTC ETF have diminished, the market trading structure and block trade activities indicate persisting price fragility, resulting in low investor confidence.
In tandem with the market sentiment, implied volatility (IV) across major trends is downward, with IV levels trailing the mean watermark. Meanwhile, Bitcoin currently trades for $63,250, up 3% in the last 24 hours, while Ethereum has gained 1.8% to $3,025 within the same timeframe.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
-Advertisement-