A $10 Billion Options Expiration Is Coming Tomorrow for Bitcoin and Ethereum

Attention in the cryptocurrency market is focused on the major options expiration tomorrow. It is reported that approximately $9.87 billion worth of Bitcoin and Ethereum options will expire and be settled.

GreeksLive, which shares data on the options market, announced that 109,000 Bitcoin options would expire on that date. The put/call ratio for these contracts was 0.93, while the maximum loss threshold was calculated at $72,000. The total nominal value of Bitcoin options was recorded at $8.55 billion.

On the Ethereum side, 563,000 option contracts are expiring. These contracts have a put/call ratio of 0.72, with a maximum price threshold of $2,200. The total nominal value of Ethereum options is reported to be $1.32 billion.

The recent recovery observed in the market is noteworthy. The rise of Bitcoin’s price above $78,000 and the positive atmosphere created by the Web3 conference in Hong Kong have, according to analysts, also brought about a recovery in the altcoin market. This week’s expiry, a significant part of the monthly options cycle, is expected to see approximately 25% of total open positions closed during this period. Looking at the distribution of open positions, there is a concentration of 12% in May-end expiry dates and 24% in June-end expiry dates.

Volatility data in the options market also provides important signals. In Bitcoin, implied volatility (IV) across different maturities has continued its downward trend this month, falling below 40% in most maturities. In Ethereum, while IV levels remain higher, the downward trend is evident; current levels hover around 60%. Despite price increases, the pullback in the “skew” data indicates that aggressive buying driven by excessive optimism or fear of missing out (FOMO) has remained limited in the market.

*This is not investment advice.