Around $6.3 billion in Bitcoin options contracts are expiring on May 29, marking one of the largest monthly expiry events in weeks. This coincides with a significant market downturn, where total cryptocurrency capitalization has dropped to $2.55 trillion, its lowest since mid-April. Analysts note that Bitcoin’s price is at a “very dangerous level,” though implied volatility has not spiked significantly.
A large batch of approximately 85,500 Bitcoin options contracts is set to expire. Their notional value is roughly $6.3 billion, according to data.
This event is larger than the typical end-of-month expiry. It occurs as crypto markets have declined all week, with around $120 billion exiting the space.
The put/call ratio for these Bitcoin options is 0.85, indicating a relative balance between long and short sellers. Max pain is around $75,000, which is higher than current spot prices.
Total Bitcoin options open interest across all exchanges is $37.5 billion. The highest concentration remains at the $80,000 strike price on Deribit.
Analysts at derivatives provider Greeks Live stated that implied volatility has not risen significantly despite the price drop. “The market as a whole is still betting on support, and large investors’ concerns about the risk of a breakout have not increased significantly,” they reported.
An additional 650,000 Ethereum options contracts are also expiring with a notional value of $1.3 billion. This brings the total crypto options expiry notional value to approximately $7.6 billion.
Spot markets remain weak, with Bitcoin struggling to hold above $73,000. Ethereum had reclaimed $2,000 but remains in bear market territory.
The sell-off has been accelerated by escalating U.S. military action in the Middle East. Further pressure comes from U.S. inflation, which increased at its fastest pace in three years in April.
