Is a Massive Sell-Off Imminent as 69,000 BTC and 92,000 ETH Options Expire on May 31st?
On May 31, the cryptocurrency market saw the expiration of significant BTC and ETH options, providing valuable insights into market sentiment and potential strategies. Greek Live tweeted that 69,000 BTC options and 920,000 ETH options expired, with noticeable differences in their respective metrics.
BTC & ETH Options Expiry
A total of 69,000 Bitcoin (BTC) options expired, with a Put Call Ratio of 0.37. The Maxpain point was determined to be $66,000, and the options had a notional value of $4.7 billion. This data indicates a significant level of market activity and interest in BTC options. However, the Put Call Ratio suggests a stronger preference for call options, reflecting a more bullish sentiment among investors.
May 31 Options Data
On May 31, 69,000 BTC options expired, with a Put Call Ratio of 0.37, a Maxpain point of $66,000, and a notional value of $4.7 billion. Additionally, 920,000 ETH options expired, with a Put Call Ratio of 0.46, a Maxpain point of $3,300, and a notional value of $3.5 billion.
The crypto market…
pic.twitter.com/1yMZymIcYZ
— Greeks.live (@GreeksLive)
May 31, 2024
In contrast, ETH options displayed a slightly different sentiment. The Put Call Ratio for 920,000 ETH options was 0.46, indicating a more balanced sentiment between calls and puts. The Maxpain point for ETH was $3,300, and the notional value of ETH options amounted to $3.5 billion. Despite having a higher Put Call Ratio compared to BTC, the overall sentiment remained positive.
Post-Spot ETH Reaction
The approval of the spot Ether ETF by the Securities and Exchange Commission (SEC) in May was a significant event for the cryptocurrency market. The anticipation of this approval led to a 20% increase in Ether prices during May. However, the SEC only approved the 19b-4 filing, delaying the actual listing for trading.
Since the Ether ETF approval, the cryptocurrency market has been experiencing a bearish sideways movement, with Ether staying below $4,000 and Bitcoin failing to surpass the $70,000 barrier. However, the market is currently undergoing a bearish correction, following the bullish surge witnessed in the past two weeks.
What To Expect Now?
Predicting the exact impact of options expiry on Bitcoin’s price is extremely challenging. Typically, spot markets do not react significantly to options expiry events, but today’s expiration is an exception. The total market capitalization has remained relatively stable at $2.68 trillion, with minimal movement in the crypto markets over the past 12 days.
At present, Bitcoin has decreased by 1.8% and is trading at $68,489, while Ethereum has slightly fallen to $3,751. Meanwhile, most altcoins are in the negative zone, extending their declines from the past few days. Meme coins, in particular, have suffered significant losses.