Insights on Bitcoin and Ethereum Options Expiry and Market Sentiment on May 24 and Beyond

The crypto market has been on a rollercoaster ride this week, with Ethereum leading the charge and SEC ETF approval adding fuel to the fire. However, all eyes are now on the expiration of Bitcoin options contracts worth a staggering $1.4 billion on May 24.

This event is seen as a precursor to a much larger expiry on May 31, where $4.3 billion worth of Bitcoin options contracts will come to an end. The market sentiment surrounding these expirations is crucial, with the put/call ratio standing at 0.88 for Bitcoin options expiring this week.

Deribit data also indicates a bullish momentum in the market, with many investors opening long positions on Bitcoin prices. The open interest at different strike prices reflects this optimism, with substantial amounts invested in contracts at key price levels.

On the Ethereum front, options expirations totaling $1.5 billion are set to expire, with a higher concentration of call options indicating bullish sentiment among traders. The anticipation of the SEC deadline has also led to a surge in investments betting on Ethereum reaching $4,000.

Despite the massive options expiry totaling $3 billion for both Bitcoin and Ethereum today, the impact on prices is not expected to be significant. Past events have shown that similar expirations have not caused major fluctuations in the market.

While the overall cryptocurrency market has seen a 3.6% decline, with Bitcoin prices dropping by 3.55%, Ethereum has managed to stabilize around $3,700. Some altcoins like Chainlink, Lido DAO, and Ondo have seen gains, while others like Solana, Dogecoin, and Tron have faced losses.

As market participants brace for the impact of the impending options expiry, cautious optimism prevails. The next few days will be crucial in determining the direction of the crypto market, so stay tuned for more updates on this developing story.