The market welcomes the expiration of over 11 billion USD in Bitcoin and ETH options amid optimistic sentiment.

Today, the crypto market will witness the expiration event of Bitcoin and Ethereum options contracts with a total value of up to 11.4 billion USD. This large-scale expiration may have a strong impact on price volatility in the short term, especially as both assets are currently in a downward adjustment trend.

Notably, the volume of options contracts expiring this time is significantly higher compared to last week, as these are monthly expirations — which usually carry greater significance and have the potential to stir the market more vigorously.

Over 11 billion USD in Bitcoin and Ethereum options contracts are set to expire in May.

Today, the crypto options market witnessed a significant event as Bitcoin options contracts expired with a total value of 9.79 billion USD, while Ethereum was also lively with 1.63 billion USD. Traders are rushing to prepare for potential strong fluctuations.

According to data from the Deribit exchange, there are up to 92,459 Bitcoin options contracts set to expire today, a sharp increase from the 25,438 contracts of last week. This indicates a growing level of interest from investors in short term hedging and speculative strategies.

The "max pain" price ( where many traders incur the most losses ) for Bitcoin contracts is currently set at $100,000, with a put-to-call ratio of 0.89 — a sign that the majority of investors still maintain a positive sentiment, despite the recent price correction of Bitcoin.

Bitcoin options are about to expire | Source: DeribitSimilarly, Ethereum options contracts also recorded a max pain level at $2,300, with a put-to-call ratio of 0.81. With a total of 623,949 contracts expiring today — a sharp increase from just over 25,000 contracts a week ago — the Ethereum market is also poised for significant movements.

The ETH options are about to expire | Source: DeribitIn the crypto market options, a put-to-call ratio maintaining below 1 is often a sign that bullish sentiment is prevailing — when the number of call options significantly exceeds reflects that the expectation of a continued bullish trend remains strong.

Notably, the (call options) are leading in open contracts (OI) across both contract types. Specifically, for Bitcoin, there are 48,888 call options compared to 43,571 put options. Ethereum even shows a clearer distinction with 343,937 call options, far exceeding 280,012 put options.

"Call options are dominating at higher price levels, indicating that bullish expectations still exist, although volatility has somewhat cooled off. So, what will happen after the expiration date?" — experts at Deribit raised the question.

However, investors should not be complacent. Options contract expiration often leads to significant volatility, which can reverse trends in the blink of an eye. Therefore, caution is essential during this sensitive period.

Options contract expirations often cause price fluctuations in the short term, increasing market uncertainty. Data from Bitcoin Magazine shows that Bitcoin has fallen 2.83% to $105,122. Meanwhile, Ethereum has decreased by 3.8%, currently trading at $2,614.

Bitcoin and Ethereum send mixed signals ahead of expiration

Notably, today's options contract expiration occurs right after the Bitcoin 2025 Conference — a two-day event in Las Vegas — officially concluded on Thursday, May 29.

In the context of the market still listening to the echoes from the conference, analysts at Greeks.live assert that the crypto market is entering a "holding its breath waiting" phase, with widespread unstable sentiment and the potential for strong volatility becoming evident.

Although Bitcoin remains stable above the $100,000 mark, indicators in the derivatives market show increasing caution. According to analysts, despite the current price of BTC fluctuating within a narrow range, many traders have begun to actively hedge against the risk of a fall.

"Most agree that if the buying flow stops for a moment, Bitcoin could drop straight down like a waterfall," — a report from Greeks.live warns.

The Put/Call ratio in the spot options market is trending downwards, reflecting an increased demand for protective put options. According to analysts, this trend indicates that many institutional investors remain cautious and are staying out of the game, despite the current prices being anchored at high levels.

Meanwhile, Ethereum is showing relatively remarkable strength. Although the upward momentum shows signs of slowing down, the implied volatility (IV) remain high – around 70% in the short term. Forecasts suggest that the price of ETH may continue to rise by about 3% in the medium to long term, as the market gradually revalues the asset after a series of recent sessions.

Overall, the market sentiment is currently leaning towards a negative trend. Many private trading groups express expectations for a strong correction of Bitcoin. In this context, the popular hedging strategy is to increase the purchase of options contracts (put) in a spread format to protect the portfolio from adverse fluctuations.

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