Explore the potential effects of Bitcoin and Ethereum options expiring on May 26, and how this may cause short-term volatility in the crypto market.
Quick Take
#bitcoin has approximately 85,000 options awaiting expiry on May 26, according to Deribit data as of May 23.
The leading #crypto currently has a 0.38 Put Call Ratio, whereas the maximum pain point is near the $27.0K mark.
Converting the contracts in dollars results in a substantial figure. The BTC contracts up for expiry are valued at around a staggering $2.2B.
#Ethereum has a Put Call Ratio of 0.49, with approximately 700,00 options expiring on May 26, according to Deribit data as of May 23.
This puts a notional value of just over $1.2B, with a max pain price of $1,800.
Short-term volatility is expected for both #BTC and ETH price action and will have a ripple effect on the entire industry.
source: cryptoslate
image source: ai
Disclaimer
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.