$2.4B in Bitcoin and Ether Options Set to Expire Today, Max BTC Pain at $61K

Around $2.4 billion worth of Bitcoin (BTC) and Ether (ETH) options contracts are set to expire on May 3, which could potentially lead to increased market volatility. Options contracts allow investors to speculate on the price movements of cryptocurrencies without actually owning them. There are two types of options: call options, which give investors the right to buy a cryptocurrency at a specific price before a certain date, and put options, which allow investors to sell a cryptocurrency at a specific price before the expiry date. The put-call ratio is often used as a metric to assess market sentiment. If more puts are being purchased than calls, it is considered bearish, but if more calls are being purchased than puts, it is considered bullish. A put-to-call ratio below 0.7 is seen as a strong bullish sentiment, while a ratio of more than 1 indicates bearishness. On May 3, 23,367 Bitcoin contracts worth $1.39 billion are set to expire. The put-to-call ratio for Bitcoin options contracts is currently at 0.50, with a maximum pain point at $61,000. This pain point refers to the price at which the highest number of holders will face financial losses. Similarly, 334,248 Ether contracts with a notional value of $1 billion are also set to expire on Friday. These contracts have a put-to-call ratio of 0.37 and a maximum pain point of $3,000. It is worth noting that the expiry of options contracts in the past has been followed by short-term price volatility in the crypto market. Both Bitcoin and Ether have recently experienced bearish pressure, with BTC falling below $60,000 and Ether dropping below $2,900. The crypto market has historically bounced back from options-led volatility within days of expiry.