Crypto markets could experience additional volatility as a massive batch of Bitcoin and Ethereum options contracts is set to expire at the end of the week and month.
On Friday, May 29, approximately 85,500 Bitcoin options contracts worth around $6.3 billion in notional value are scheduled to expire. The expiry event is significantly larger than usual, raising concerns that it could influence short term spot market movements.
The broader crypto market has already been under heavy pressure throughout the week, with nearly $120 billion wiped from total market capitalization as Bitcoin weakened and Ethereum suffered even steeper losses.
Investor sentiment has deteriorated further following escalating United States military activity in the Middle East, which has intensified risk aversion and accelerated market selling.
Bitcoin Options Expiry Could Increase Volatility
According to Coinglass data, this week’s Bitcoin options expiry carries a put to call ratio of 0.85, suggesting that bullish and bearish positioning remains relatively balanced.
The maximum pain level is estimated near $75,000, slightly above Bitcoin’s current spot price, meaning a portion of contracts could expire out of the money.
Open interest remains heavily concentrated around the $80,000 strike price on Deribit, where roughly $1.7 billion worth of positions are still active. Meanwhile, bearish traders continue holding around $1.2 billion in open interest at the $60,000 strike level.
Overall Bitcoin options open interest across exchanges has declined in recent weeks and currently stands near $37.5 billion.
Derivatives analytics platform Greeks Live noted on Thursday that despite Bitcoin falling toward what it described as a “very dangerous level,” implied volatility has not increased dramatically.
The firm added that the latest expiry could substantially reshape current options positioning across the market.
According to the report, traders still appear to be betting on support levels holding, while concerns among large investors about a major breakout risk have not increased significantly.
Ethereum Contracts Also Near Expiry
In addition to the Bitcoin expiry, roughly 650,000 Ethereum options contracts are also set to expire.
These ETH contracts carry an estimated notional value of $1.3 billion, with a maximum pain level around $2,200 and a put to call ratio of 0.77.
Total Ethereum options open interest across exchanges currently sits near $6.9 billion.
Combined, the Bitcoin and Ethereum expiries bring the total crypto options expiry value to approximately $7.6 billion, making it one of the largest expiry events in recent weeks.
Spot Markets Remain Under Pressure
The crypto market has struggled throughout the week, with total market capitalization falling to roughly $2.55 trillion during Friday trading hours in Asia, marking the lowest level since April 13.
Bitcoin managed to recover above $73,000 after briefly falling below that level twice on Thursday. However, market structure remains fragile and analysts continue to warn that further downside remains possible.
Ethereum also reclaimed the $2,000 level at the time of writing, though the asset continues to show significant weakness and remains deep in bearish territory.
Market sentiment may face additional pressure from United States inflation data after the latest Personal Consumption Expenditures report showed inflation rising at its fastest pace in three years during April.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
