On May 22, 2025, the crypto options market showed mixed sentiments. Following Bitcoin's recent rally, traders approached trades with greater caution, balancing between buying and hedging.
Market Overview: Volume Leaders & Sentiment Shifts
The total options volume amounted to approximately $28.5 million, with Bitcoin (BTC) taking up a significant share of around $21.4 million. The flows were diverse, with traders not only buying options but also hedging their positions. Altcoins like Ethereum (ETH) and Solana (SOL) also showed significant activity, though sentiments and traders' strategies differed.
Bitcoin (BTC): Heavy Volume with Balanced Flows
BTC recorded a trading volume of ~$21.4 million. The flows were such that nearly 50% were call purchases, and 50% were puts. This balanced volume reflects cautious optimism among traders who continued to hedge their positions. Open interest on the platform remains high, indicating a combination of views on future price moves.
Ethereum (ETH): Puts Spike as Traders Hedge Aggressively
ETH recorded an options volume of about $4.95 million, with 95% of that volume flowing into put contracts. This signals a protective strategy among traders anticipating a short-term price decline. Significant put purchases were noted, indicating a sentiment of caution amid approaching expirations.
The options market on May 22, 2025, demonstrates cautious optimism with mixed strategies among traders. Major cryptocurrencies such as Bitcoin and Ethereum show balanced behaviors, while altcoins attract attention with high levels of speculative activity. This day serves as an example of adaptive trading where traders use hedging amidst uncertainty.
