Nearly 23,000 Bitcoin options with a total value of $1.4 billion are set to expire today, adding to the prevailing bearish sentiment in the market. Additionally, around 334,248 Ether contracts worth $1 billion may also expire due to the disappointing performance of the Hong Kong ETF.
After dipping below the $60,000 mark, the price of Bitcoin has seen a slight upward reversal of 1.8% in the past 24 hours, reaching $58,000. Despite this, the monthly and year-to-date performance of Bitcoin remains positive, with returns of 36% and 33% respectively.
The future movement of Bitcoin is uncertain, with Greeks.Live reporting that a significant number of Bitcoin options are nearing expiration. These options have a notional value of $1.4 billion and a Put Call Ratio of 0.49, with a Maxpain point set at $61,000. Similarly, there are 334,248 Ether contracts with a notional value of $1 billion that are also set to expire today. These contracts have a put-to-call ratio of 0.37 and a maximum pain point of $3,000. The term Maxpain refers to the price at which an asset would result in financial loss for most of its holders.
On May 3, a total of 23,000 BTC options are due to expire, with a Put Call Ratio of 0.49, a Maxpain point of $61,000, and a notional value of $1.4 billion. Additionally, 330,000 ETH options are set to expire, with a Put Call Ratio of 0.36, a Maxpain point of $3,000, and a notional value of $1 billion. The cryptocurrency market has experienced a continued decline this week, with Bitcoin hitting a new low since March at the $60,000 mark.
The failure of the Hong Kong ETF to attract significant trading volume has further contributed to the bearish condition of the overall crypto market and Bitcoin. On its first day, the Hong Kong Bitcoin and Ethereum spot ETF processed only $12.7 million in trading volume, which is believed to be due to the concentration of institutional investor interest in the US market. This result has been deemed “very disappointing” by QCP Capital, a Singapore-based crypto trading firm. In contrast, the US spot Bitcoin ETF has experienced consecutive outflows, with $563.7 million withdrawn on May 1st. This situation has eroded market confidence and impacted the price of Bitcoin, according to Greeks.Live.
The listing of the Hong Kong ETF has failed to generate significant additional trading volume, while the US BTC ETF has continued to experience outflows. This has weakened market confidence and caused a decline in the Implied Volatility (IV) of major terms. The current IV level is considered the average level of the winter bull market, providing some support. Despite this, sustained sideways trading is unlikely, and a lack of rebound may result in a downward trend. It is recommended to strengthen block trading due to a lack of market confidence from a major whale.
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