The cryptocurrency options market is at a critical juncture as a large number of Bitcoin (BTC) and Ethereum (ETH) options are set to expire soon. The impending expiry involves 21,000 BTC options and 350,000 ETH options, signaling a significant shift in market dynamics and trader sentiment.
As of May 24th, 21,000 BTC options are on the verge of expiration with a Put Call Ratio of 0.88, a Maxpain point of $67,000, and a notional value of $1.4 billion. On the other hand, 350,000 ETH options are also about to expire with a Put Call Ratio of 0.58, a Maxpain point of $3,200, and a notional value of $1.3 billion.
The BTC options nearing expiration carry a total notional value of around $1.4 billion, with a Put Call Ratio of 0.88 indicating a slightly bullish sentiment among traders. The crucial Maxpain point of $67,000 could influence market behavior leading up to the expiry date.
In contrast, ETH options exhibit a stronger bullish sentiment with a lower Put Call Ratio of 0.58 and a total notional value of nearly $1.3 billion. The Maxpain point for ETH options is $3,200. Notably, Ethereum has recently outperformed Bitcoin, driven by positive developments related to Ethereum-traded funds (ETFs). This surge in performance resulted in a 20% increase in ETH prices in a single day, with short-term options’ implied volatility (IV) skyrocketing to 150%.
The divergence between Bitcoin and Ethereum is becoming more evident in block trading and market trading structures. While Ethereum maintains a solid bullish sentiment, sustaining high IV levels across significant terms poses a challenge. Market analysts recommend exploring calendar spreads for better opportunities in the current market conditions. On the Bitcoin front, the sentiment is more balanced, with noticeable pressures from call selling indicating a mixed outlook among traders.