Image
Source:
Pixabay
About
85,000
bitcoin
options
contracts,
worth
around
$2.3
billion,
are
set
to
expire
on
major
cryptocurrency
futures
and
options
exchange
Deribit
this
Friday.
According
to
Deribit
data,
around
700,000
Ethereum
options,
valued
at
over
$1.2
billion,
are
also
set
to
expire
on
May
26.
“This
Friday
a
total
value
of
USD
3.6
billion
will
expire,
which
equals
approximately
26%
of
Deribit’s
open
interest,”
the
platform
said
in
a
recent
tweet.
It
detailed
that
the
leading
cryptocurrency,
Bitcoin,
has
a
Put
Call
Ratio
of
0.38,
indicating
a
higher
number
of
positive
bets.
Bitcoin’s
maximum
pain
point,
the
point
or
the
strike
price
where
the
largest
number
of
options
open
interest
will
expire
worthlessly,
is
situated
at
around
$27,000.
This
level
carries
significant
importance,
as
it
could
act
as
a
critical
support
or
resistance
area
that
intensifies
price
fluctuations.
The
current
value
of
Bitcoin
contracts
reaching
expiry
stands
at
an
impressive
$2.2
billion
when
converted
to
dollars.
This
staggering
figure
highlights
the
significance
of
the
upcoming
contract
expiry
and
the
potential
impact
it
may
have
on
the
marketplace.
Ethereum,
the
second-largest
cryptocurrency,
has
a
Put
Call
Ratio
of
0.49,
indicating
a
marginally
higher
proportion
of
bearish
sentiment.
Roughly
700,000
Ethereum
options
contracts
have
an
expiry
date
of
May
26,
with
a
notional
value
of
just
over
$1.2
billion.
Traders
are
particularly
monitoring
the
max
pain
price,
which
is
estimated
to
be
at
$1,800
for
Ethereum.
This
level
could
act
as
a
focal
point
for
market
movements
and
potentially
impact
the
short-term
volatility
of
the
cryptocurrency.
As
Bitcoin
and
Ethereum
approach
contract
expiry,
market
participants
could
expect
potential
turbulence
in
the
short
term.
The
expiration
of
these
contracts
has
the
potential
to
create
short-term
price
fluctuations
that
could
reverberate
throughout
the
entire
cryptocurrency
industry.
“In
the
meantime,
Implied
Vol
remains
at
rock
bottom
level,
with
DVOL
trading
at
50
for
BTC
and
ETH
and
shorter-dated
even
lower
but
climbing
slightly,”
Deribit
said
in
the
tweet.
“BTC
and
ETH
levels
are
the
same,
which
is
historically
rare.
We
saw
a
similar
rock
bottom
IV
situation
in
Jan
this
year,
followed
by
a
big
spike
afterwards.”
Crypto
Assets
Struggle
Amid
US
Debt
Ceiling
Debate
Drama
Cryptocurrencies
have
been
struggling
to
gather
pace
as
investors
remain
worried
about
the
debt
ceiling
and
the
Federal
Reserve’s
next
move.
According
to
analysts,
even
if
the
US
government
raises
the
debt
ceiling
before
the
June
1
deadline,
it
could
still
negatively
impact
risk-on
assets
like
stocks
and
cryptocurrencies
because
the
issuance
of
new
US
Treasuries
could
reduce
liquidity
within
the
market.
Fixed-income
assets
like
one-year
instruments,
which
currently
offer
a
5.15%
yield,
are
usually
attractive
investment
options
in
times
of
economic
uncertainty.
For
instance,
US
money
market
fund
assets
hit
a
record
$5.8
trillion
this
week
as
investors
focused
on
short-term
debt
securities,
according
to
a report
by
Reuters.
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