The cryptocurrency market braces for volatility as $11.4 billion worth of Bitcoin and Ethereum options expire today. This massive monthly expiry could influence short-term price movements, particularly after recent pullbacks in both assets.
Key Details of May’s Options Expiry
Today’s expiring contracts include:
- Bitcoin (BTC): $9.79 billion (92,459 contracts)
- Ethereum (ETH): $1.63 billion (623,949 contracts)
Deribit data reveals a put-to-call ratio of 0.89 for BTC and 0.81 for ETH, signaling bullish dominance despite recent price declines.
Market Sentiment and Metrics
- Bitcoin’s maximum pain price: $100,000
- Ethereum’s maximum pain price: $2,300
- Open interest: Calls outnumber puts for both assets (48,888 vs. 43,571 for BTC; 343,937 vs. 280,012 for ETH).
"Calls dominate at higher strikes, reflecting upside interest despite cooling volatility. What happens post-expiry?" — Deribit analysts.
Short-Term Price Impact and Cautionary Notes
While the put-to-call ratios suggest optimism, traders should anticipate:
- Increased volatility around expiry.
- Potential price swings due to hedging activity.
Current prices (as of expiry day):
- BTC: $106,122 (-1.43%)
- ETH: $2,634 (-3.43%)
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Post-Bitcoin Conference 2025 Market Dynamics
Analysts note mixed signals following the Las Vegas event:
- BTC derivatives show caution, with rising demand for protective puts.
- ETH’s implied volatility remains high (~70%), though momentum slows.
"Institutional players are sidelined, and private traders expect a sharp BTC pullback." — Greeks.live
FAQ Section
1. What does a put-to-call ratio below 1 indicate?
A ratio under 1 (e.g., 0.89 for BTC) suggests more traders are betting on price increases (calls) than decreases (puts), reflecting bullish sentiment.
2. Why do options expirations cause volatility?
Large-scale expirations force traders to adjust positions, triggering short-term price fluctuations due to hedging or profit-taking.
3. How does Ethereum’s performance compare to Bitcoin’s?
ETH shows relative strength with elevated IV, but both assets face downward pressure ahead of expiry.
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Final Note: Exercise caution amid expiry-driven volatility. While bullish signals persist, market corrections remain possible. For updates, track real-time data and diversify strategies.