⭐️ Bitcoin, Ethereum options expiry, market volatility ahead?
Bitcoin (BTC) and Ethereum (ETH) are facing major options expiries as May 31 approaches and it is set to influence the market. The biggest crypto is trading around the $68,500 price range with a put/call ratio of 0.58. This indicates a bullish sentiment among traders.
🔸 What does Bitcoin data say?
Data shows that the total open interest (OI) turns out to be approximately 68,000 BTC (worth around $4.7) billion. However, the max pain price is $65,000 which suggests that BTC’s price could drop towards this level as expiration nears.
Bitcoin is trading at an average price of $67,904, at the press time. BTC price has dropped by over 2% in the last 24 hours. It is still up by 7% in the last 7 days. Its 24 hour trading volume is up by 51% to stand at $32.9 billion.
On the other side, Ethereum is trading below the $4,000 price range with a put/call ratio of 0.85. This reflects a more balanced sentiment between bullish and bearish positions.
Its total open interest stands out to be 897,238 ETH which is equal to a notional value of $3.5 billion. It is important to note that the max pain price for Ether is set at $3,300. It can potentially be influencing price movements as the expiration date approaches.
🔸 Why is this so?
Ether price saw a surge of 15% in the last 30 days. ETH is trading at an average price of $3.840, at the press time. Its 24 hour trading volume is up by 4% to stand at $19 billion.
Bets on further Ether gains are intensifying following a surprise US regulatory pivot towards allowing exchange-traded funds (ETFs) for the digital asset.
This shift by the Securities and Exchange Commission (SEC) helped in a 26% jump in Ethereum. It marked the biggest weekly advance since the 2021 crypto bull market. Speculators are optimistic, drawing parallels to the record-breaking January debut of US spot-Bitcoin ETFs, which have amassed $59 billion in assets. However, Ethereum is less well-known than Bitcoin, making investor appetite for exposure harder to gauge.
