Summary

On May 31, Bitcoin options worth $4.7 billion and Ether options worth $3.5 billion expired, leading to anticipated price fluctuations in the digital currency market. The termination of these contracts tends to impact digital currency prices significantly. Understanding the put/call ratio, maximum pain points, and market reactions post-spot Ether ETF approval are crucial in assessing the current sentiment and positions of traders.

Impact of Options Expiry

The expiry of Bitcoin and Ether options contracts on May 31, valued at $4.7 billion and $3.5 billion, respectively, played a significant role in influencing market volatility. The termination of these contracts often triggers fluctuations in digital currency prices, impacting trader sentiments and market dynamics.

Analysis of Put/Call Ratio

Derbit data illustrated the put/call ratio for the expired Bitcoin options standing at 0.61, indicating more long contracts than shorts. In contrast, the put/call ratio for Ether options was 0.46. These ratios serve as technical indicators of market sentiment, with values below 0.7 signaling bullish sentiment and those above 1 indicating bearish views.

Evaluation of Maximum Pain Points

The maximum pain points for leverage traders in Bitcoin and Ether were set at $66,000 and $3,300, respectively. Currently, Bitcoin is trading above its pain point at $68,210, while Ether is above its designated point at $3,738. Notable open interest was observed in long positions with strike prices at $70,000, $75,000, $80,000, and $100,000, showcasing traders' optimistic outlook.

Market Reaction Post-Spot Ether ETF Approval

The SEC's approval of the spot Ether ETF filing in May impacted the cryptocurrency market positively. Ether prices surged by 20% in anticipation of this approval. However, the delay in the actual listing for trading has led to a sideways movement in the market, with Ether struggling below $4,000 and Bitcoin below $70,000. The market is currently experiencing a correction phase after the recent bullish trend.