Bitcoin (BTC) and Ethereum (ETH) Prepare for a Massive $3.1B Options Expiry

While taking a pause from the bullish run, Bitcoin (BTC) and Ethereum (ETH) saw a retreat today as the cryptocurrency market prepared for a massive $3.1 billion options expiry scheduled for May 16.

Bitcoin (BTC) and Ethereum (ETH) encountered setbacks on May 15 as the cryptocurrency market braced for a significant $3.1 billion options expiry on Monday, May 16, data from crypto derivatives exchange Deribit showed.

At the time of writing, Bitcoin (BTC) is trading at $102,326, marking a decline of 1.53% in the past 24 hours, while Ethereum (ETH) is at $2,552, showing a decrease of 2.53%.

According to the exchange, Bitcoin options, valued at $2.66 billion, are largely split with a Put/Call ratio of 0.99, and the max pain point stands at $100,000.

On the other hand, Ethereum options, totaling $525 million, lean more bearish with a Put/Call ratio of 1.24 and a max pain point of $2,200, which indicates stronger hedging activity.

This near-even ratio reflects a market split between bullish and bearish sentiment, suggesting uncertainty among traders.

The max pain point, where the most options contracts would expire worthless, often acts as a magnet for prices during expiries, potentially driving volatility.

Historical data from CoinGlass indicates that such large expiries, above $1 billion, have led to price swings of 5-7% in 60% of cases over the past two years, a trend that has traders on edge.

Deribit, which controls approximately 85% of the global BTC and ETH options market, is a central node in these dynamics, amplifying the event’s impact.

As the market moves towards the weekend, traders are closely monitoring for potential catalysts that could exacerbate price movements, especially given Ethereum’s higher put interest, which echoes hedging patterns seen during the 2022 Ethereum Merge when funding rates turned negative.

Ultimately, Bitcoin’s balanced sentiment leaves room for either a breakout or a deeper pullback, depending on broader macro factors.