Could Crypto Markets Surge After $1.4 Billion Bitcoin Options Expiration?

This week, the crypto markets remained resilient, driven by positive Ethereum performance and the SEC's green light for spot ETFs.

However, the imminent expiration of around $1.4 billion worth of Bitcoin options contracts on May 24 adds an intriguing twist.

While this week's 21,000 contract expiry seems modest, the real fireworks may happen at month-end, with $4.3 billion in options set to expire by May 31, as reported by Deribit.Insights into Bitcoin Options Expiry:The put/call ratio for this week's Bitcoin options sits at 0.88, indicating a balanced scenario between long and short-contract holders, slightly favoring calls. The "max pain" point, where most option buyers lose their premium, hovers around $67,000.

In terms of open interest (OI), long positions dominate, particularly at the $70,000 strike price, accounting for approximately $830 million. Higher strike prices also show significant OI, with $843 million at $100,000.

For put contracts, the $60,000 strike price boasts the highest OI at $388 million. This strong open interest suggests bullish expectations for BTC's future prices.

In addition to Bitcoin options, around 354,000 Ethereum contracts with a notional value of $1.5 billion are set to expire today. The put/call ratio stands at 0.57, indicating more calls expiring than puts.

Traders have been actively speculating on ETH ahead of the SEC deadline, with $515 million in OI at the $4,000 strike price, reflecting bullish sentiment.

Crypto Market Dynamics:Despite the significant options expiry totaling nearly $3 billion for BTC and ETH, the impact on spot markets typically remains subdued. The overall market capitalization has dipped by 1.3% to $2.68 trillion, largely attributed to a 2.3% decline in Bitcoin prices, currently at $67,400.

While Ethereum experienced volatility leading up to the recent decision, it has since stabilized around $3,730.

Altcoins displayed a mixed performance, with gains observed in Chainlink (LINK), PEPE, and Ethereum Classic $SOL $BTC $ETH