Ethereum

Bitcoin Options Expiry Indicates Bullish Sentiment, Ethereum Shows Mixed Outlook

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Quick take

As the end of the month approaches, important options expiration for both Bitcoin And Ethereum are set for May 31. Bitcoin is trading around $68,500 with a put/call ratio of 0.58, indicating bullish sentiment among traders. The total open interest is approximately 68,000 BTC, which corresponds to a substantial notional value of $4.7 billion. The maximum price is $65,000, suggesting that this level could act as a gravitational pull for Bitcoin price as expiration approaches due to hedging activities.

Bitcoin: open interest by strike price: (Source: Deribit)

Ethereum, on the other hand, is trading below $4,000 with a put/call ratio of 0.85, reflecting more balanced sentiment between bullish and bearish positions. The notional value is lower than Bitcoin at $3.5 billion, but the total open interest for Ethereum options is 897,238 ETH. The maximum price for Ethereum is set at $3,300, which could influence price movements as the expiration date approaches.

Ethereum: open interest by strike price: (Source: Deribit)

While Ethereum open interest is significant around the $2,200 and $2,600 strike prices, there is also notable activity at higher strike prices. Many Ethereum call options are positioned at these high levels, reflecting mixed sentiment.

In contrast, Bitcoin demonstrates more pronounced bullish sentiment, as evidenced by its lower put/call ratio and concentrated open interest at higher strike prices. This suggests that traders are more optimistic about the price outlook for Bitcoin compared to Ethereum.

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