The total value of outstanding BTC options contracts stands at $19 billion. On May 31, 69,000 Bitcoin options valued at $4.7 billion and 920,000 Ether options valued at $3.5 billion expired. Historically, the expiration of crypto options contracts has been associated with price volatility in the crypto market.
According to data from Derbit, the put/call ratio for expired Bitcoin options, with Bitcoin trading at $68,332, is 0.61. This indicates that more calls (or long contracts) are expiring than puts (or short contracts). Conversely, Ether options, with Ether trading at $3,790, had a put/call ratio of 0.46.
The put/call ratio (PCR) serves as a technical indicator reflecting trader sentiment. A PCR below 0.7 signifies strong bullish sentiment, while a PCR above 1 indicates strong bearish sentiment.
Max Pain Levels: Bitcoin at $66,000, Ether at $3,300
The maximum pain points, where most losses are anticipated for leverage traders, are $66,000 for Bitcoin and $3,300 for Ether. Currently, Bitcoin is trading at $68,210, $2,000 above its pain point, while Ether is trading at $3,738, over $400 above its pain point.
Millions in open interest (OI) are tied to long positions with strike prices ranging from $70,000 to $100,000. Open interest refers to the total number of outstanding derivative contracts awaiting settlement.
Some traders have positioned long positions on Bitcoin with a target price of $100,000. With $886 million in open interest (OI) at this strike price, the volume of long positions appears substantial. The collective value of all outstanding BTC options contracts amounts to $19 billion.
Summary Review: While options expirations can inject short-term volatility, they also reflect the underlying dynamics of market sentiment and trader positioning. As participants assess the implications of these events, the crypto market remains a dynamic and ever-evolving ecosystem, offering both challenges and opportunities for participants.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
