As the cryptocurrency market enters a critical stage, Bitcoin and Ethereum traders are closely monitoring the imminent expiration of a large number of option contracts. According to Deribit data as of May 23, approximately 85000 Bitcoin options and 700000 Ethereum options will expire on May 26
As the cryptocurrency market enters a critical stage, Bitcoin and Ethereum traders are closely monitoring the imminent expiration of a large number of option contracts. According to Deribit data as of May 23, approximately 85000 Bitcoin options and 700000 Ethereum options will expire on May 26. This event is expected to bring short-term fluctuations to these two cryptocurrencies, which may affect a wider industry.
The leading cryptocurrency Bitcoin currently has a bearish to bearish ratio of 0.38, indicating a high number of bullish bets. However, market participants have determined that Bitcoin's biggest pain point is close to the $27000 mark. The importance of this level indicates that it can serve as a key support or resistance area, leading to intensified price trends.
Converted into US dollars, the total value of expired Bitcoin contracts reaches an astonishing 2.2 billion US dollars. This significant number further highlights the importance of upcoming events and their potential impact on the market. Traders and investors will closely monitor how the expiration of these option contracts affects the price trajectory of Bitcoin.
At the same time, the put option ratio of Ethereum, the second largest cryptocurrency, is 0.49, indicating that the proportion of put sentiment is slightly higher than that of Bitcoin. Approximately 700000 Ethereum options will expire on May 26th, with a nominal value of slightly over $1.2 billion. Traders are particularly concerned about Ethereum's maximum pain price, estimated at $1800. This level can serve as the focus of market trends and may affect the short-term volatility of cryptocurrencies.
With Bitcoin and Ethereum options about to expire, market participants are preparing for potential turbulence in the coming days. The expiration of these contracts may cause short-term price fluctuations and may have repercussions throughout the encryption industry. Traders, investors, and enthusiasts will closely monitor the market to measure impact and adjust their strategies accordingly.
It is important to note that option expiration events typically bring higher uncertainty and increased trading activity. As traders close their positions or transfer them to new contracts, market dynamics may rapidly shift, leading to increased volatility. The results of this expiration event can provide valuable insights into the sentiment and future direction of the cryptocurrency market.
In short, with thousands of option contracts expiring on May 26th, Bitcoin and Ethereum are on the brink of major events. The large numbers involved include BTC contracts worth approximately $2.2 billion and ETH contracts worth over $1.2 billion, increasing expectations for short-term fluctuations.
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