Tomorrow, May 16, options worth over $3.1 billion for Bitcoin and Ethereum expire on the Deribit exchange. This event could significantly impact the short-term volatility of the cryptocurrency market. Especially considering the current dynamics of open interest and the positioning of options bets.
The total amount of open contracts for Bitcoin is $2.66 billion. The put-to-call ratio is nearly neutral (0.99), but the level of maximum pain sits at $100,000, which is significantly lower than the current spot price. This means that it will be unprofitable for most traders if the price of Bitcoin continues to rise, and some market participants may start to close long positions.
For Ethereum, options worth $525 million are open. The put-to-call ratio is above one — 1.24, indicating a predominance of protective bets. The level of maximum pain is $2200, also below the current price of ETH. This could influence the sentiments of participants preparing for a possible correction.
