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.Â
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.
May 10 Options Data
18,000 BTC options are about to expire with a Put Call Ratio of 0.64, a Maxpain point of $62,000 and a notional value of $1.2 billion.
280,000 ETH options are about to expire with a Put Call Ratio of 0.74, Maxpain point of $3,050 and a notional value of $800… pic.twitter.com/lurrMvi8cO— Greeks.live (@GreeksLive) May 10, 2024
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.
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.
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