This week, crypto markets have largely maintained their gains, supported by Ethereum and the US Securities and Exchange Commission’s approval of spot exchange-traded funds. However, approximately $1.4 billion in Bitcoin options contracts are set to expire on May 24.

The upcoming expiry of 21,000 contracts is relatively minor compared to the larger event on May 31, when options worth $4.3 billion will expire, according to Deribit.

Bitcoin Options Expiry

The put/call ratio for this week’s Bitcoin options contracts is 0.88, indicating that long and short-contract sellers are almost evenly balanced, with a slight edge towards calls. The max pain point, the price at which most option buyers lose their premium, is $67,000.

Long positions dominate open interest (OI), with approximately $830 million at the $70,000 strike price and around $843 million at the $100,000 strike price. The $60,000 strike price holds the highest OI for put contracts, totaling $388 million. Open interest represents the number or value of contracts yet to be settled, suggesting that bulls are anticipating higher BTC prices.

Ethereum Options Expiry

In addition to Bitcoin options, about 354,000 Ethereum contracts, with a notional value of $1.5 billion, are also expiring today. The put/call ratio for these contracts is 0.57, indicating more calls than puts. Derivatives traders have been actively speculating on ETH ahead of the SEC deadline, with $515 million in OI at the $4,000 strike price, as bulls expect increased momentum.

Market Impact

Despite the expiry of nearly $3 billion in BTC and ETH options today, the impact on spot markets is usually limited. Total market capitalization has decreased by 1.3% to $2.68 trillion, primarily due to a 2.3% drop in Bitcoin prices, which are currently at $67,400.

Ethereum experienced significant volatility ahead of yesterday’s decision but is now stable at $3,730. Altcoins have shown mixed performance, with gains for (LINK),(ETC),SOL),(DOGE),(TON).

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