$3B Crypto Options to Expire: What It Means for Bitcoin and Ethereum Today.
Today, May 16, over $3.2 billion in crypto options contracts are set to expire, including 26,500 Bitcoin contracts valued at $2.7 billion and 220,000 Ethereum contracts worth $570 million. This event comes as the market shows signs of cooling after a recent rally.
Key Highlights:
Bitcoin $BTC : The put/call ratio stands at 0.99, indicating a balanced sentiment between bullish and bearish positions. The max pain point is at $100,000, with significant open interest at $110,000 and $120,000 strike prices, suggesting traders are eyeing new all-time highs.
Ethereum $ETH : With a put/call ratio of 1.24 and a max pain point at $2,200, there's a slightly bearish tilt among traders.
Market Sentiment:
Analysts from Greeks Live note a growing caution among traders, with many taking profits on long positions and adopting defensive strategies. The market's recent gains have led to concerns about overextension, particularly around the $105,000 level for Bitcoin.
Current Market Snapshot:
Bitcoin: Trading around $104,000, showing resilience with a 1.2% daily increase.
Ethereum: Trading near $2,500, reflecting the cautious sentiment among traders.
As these options expire, the market's next moves will be crucial in determining whether the recent rally continues or if a correction is on the horizon.
