By George Ward
Crypto Market Braces for Major Options Expiry
As the 2024 cryptocurrency market continues to captivate investors worldwide, all eyes are on the impending options expiry set to shake up the landscape.
According to data from Greeks.live, 21,000 BTC options are nearing their expiration date. The put/call ratio stands at 0.88, indicating a nearly balanced market with a slight preference for call options.
On May 31, $4.3 billion worth of options are scheduled to expire, per Deribit’s report. The data reveals a predominance of long positions in open interest (OI), with a notable $830 million tied to the $70,000 strike price.
Additionally, higher strike prices show substantial OI, with $843 million at the $100,000 mark. The $60,000 strike price, with $388 million in open interest, stands out as the most significant price level for put contracts.
This OI suggests that many contracts remain unsettled and that the bulls are confident in BTC’s higher price trading. Open interest represents the unresolved value of contracts awaiting settlement.
Ethereum’s Bullish Sentiment
The options expiry event also impacts Ether, with 350,000 ETH contracts expiring. These contracts represent a notional value of $1.3 billion. The put/call ratio for Ether is 0.58, with a max pain point of $3,200, suggesting a slightly bullish tone.
Also, more call options are expiring than put options. Greeks.live’s report also noted a divergence between Bitcoin and Ethereum. While ETH’s bullish sentiment remains strong, BTC is more balanced between long and short positions.
Bitcoin Dominance Risks Breaking 18-Month Uptrend
Following the United States regulators’ green light for the launch of spot Ether exchange-traded funds (ETFs), the reaction from the two largest cryptocurrencies, Bitcoin (BTC) and Ether (ETH), has been subdued.
However, it’s worth noting that the ETFs are not yet ready for trading, requiring additional preparations that may delay their launch until mid-June. This delay has contributed to the muted response from traders.
James Seyffart and Eric Balchunas — top ETF analysts at Bloomberg Intelligence — have discussed the possibility of a mid-June launch for the Ether ETFs. This speculation has added to the anticipation surrounding the impact of these ETFs on the market.
One of the critical points of interest for market participants is the effect of the spot Ether ETF approval on Bitcoin’s dominance in the cryptocurrency market. Famous trader Daan Crypto Trades argued that the approval of the Ether ETFs could affect Bitcoin’s dominance, leading to a reversal of the 18-month uptrend in Bitcoin dominance.
Bitcoin’s dominance, which peaked at 57% in mid-April, has been on an upward trajectory for the past 18 months. However, the approval of spot Ether ETFs could cause alternative cryptocurrencies to gain momentum at the expense of Bitcoin. This potential shift has led some traders to predict that a full-blown “altseason,” is about to begin.
Traders Monitor Key Support Levels
Meanwhile, traders are closely monitoring Bitcoin’s price levels, particularly around the $66,000 mark, to gauge market sentiment. Skew, a popular analyst and trader, has identified a zone of interest around this price level, predicting an initial spot demand for Bitcoin. According to him, this level will be crucial in determining whether Bitcoin can maintain its current market position.