Nearly 23,000 Bitcoin options worth $1.4 billion are set to expire today, adding to the bearish sentiment in the overall market. In addition, around 334,248 Ether contracts with a notional value of $1 billion are also expected to expire following the disappointing performance of the Hong Kong ETF.
After falling below the $60,000 mark, the price of Bitcoin experienced a slight upward reversal of 1.8% in the last 24 hours, reaching $58,000. Despite recent fluctuations, Bitcoin has maintained positive monthly and year-to-date returns of 36% and 33% respectively.
The future movement of Bitcoin remains uncertain, as 23,000 BTC options are on the verge of expiry. These options have a notional value of $1.4 billion and a reported Put Call Ratio of 0.49, with a Maxpain point set at $61,000. Similarly, 334,248 Ether contracts with a notional value of $1 billion are also due to expire, with a put-to-call ratio of 0.37 and a maximum pain point of $3,000.
It is worth noting that the Maxpain point refers to the price at which an asset would cause the most financial loss to its holders. The expiration of these options and contracts may have a significant impact on the crypto market.
Furthermore, the failure of the Hong Kong ETF to generate substantial trading volume has added to the bearish conditions in the market. On its first day, the Hong Kong Bitcoin and Ethereum spot ETF processed only $12.7 million in trading volume, with institutional investor interest reportedly focused on the US market. This disappointing result has affected market confidence and contributed to the decline in Bitcoin’s price.
Meanwhile, the US spot Bitcoin ETF has experienced consecutive outflows, with $563.7 million withdrawn on May 1st. This situation has further weakened market confidence and contributed to the overall bearish sentiment.
In conclusion, the expiration of a large number of Bitcoin and Ether options, coupled with the underperformance of the Hong Kong ETF, has led to increased bearishness in the crypto market. The future direction of Bitcoin remains uncertain, and market confidence has been significantly impacted by recent events.