Bitcoin awaits $1.5 billion options expiry..."If it can't reach $79,000, will a bunch of options become worthless?"

▲ Bitcoin (BTC)

Cryptocurrency investors are strengthening their defensive postures ahead of Bitcoin (BTC) options expiry. As the spot market continues its weakness, approximately $1.5 billion worth of Bitcoin option contracts are set to expire, increasing vigilance against short-term volatility.

Cryptopotato reported on May 22 (local time) that about 20,500 Bitcoin option contracts are expiring today. The notional value is approximately $1.5 billion. However, this expiry volume is smaller than usual, so its impact on the spot market is expected to be limited.

The put/call ratio for this Bitcoin options expiry was calculated at 0.69. The maximum pain price is approximately $79,000, which is slightly higher than the current spot price. Accordingly, an analysis suggested that some contracts might expire worthless.

On Deribit, Bitcoin options open interest was most concentrated at the $80,000 strike price. The open interest in that range is $1.65 billion. Conversely, short-position investors are maintaining $1.2 billion in open interest at the $60,000 strike price. According to CoinGlass data, Bitcoin options open interest across all exchanges has steadily increased this month, reaching $37.6 billion.

Deribit announced on May 21 (local time) that over $1.8 billion worth of crypto options would expire the following day at 08:00 UTC. Of these, Bitcoin options were presented with a notional value of $1.53 billion, a put/call ratio of 0.69, and a maximum pain price of $79,000. Ethereum (ETH) options were presented with a notional value of $264 million, a put/call ratio of 1.03, and a maximum pain price of $2,200.

Greeks Live analyzed that investors are using the recent rebound to build defensive positions for the last ten days of the month. Greeks Live stated, "Overall, the market is taking defensive positions in anticipation of price declines, but does not expect a market crash." It added that May and June have long been considered unfavorable trading periods, and since May, large investors have been buying effective protection and selling margin calls in the tail end to control costs.

Ethereum options also expire today. Approximately 123,000 Ethereum option contracts are subject to expiry, with a notional value of $263 million. The maximum pain price is $2,200, and the put/call ratio is 1. Open interest for Ethereum options across all exchanges is approximately $6.9 billion. Deribit assessed that Ethereum positioning has shifted from a strong call dominance last week to almost a balanced state, indicating that investor confidence is cooling and awaiting new catalysts.

The spot market continued its weakness. The total cryptocurrency market capitalization decreased to $2.67 trillion. Bitcoin failed to break above $78,000, then fell to $76,750 during the session, recovering slightly on Friday morning. Cryptopotato reported that Bitcoin appears to have resumed its downtrend, dragging down other cryptocurrency markets with it.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*