On May 1, 23,000 Bitcoin (BTC) options expired with a Put Call Ratio of 1.13 and a maximum pain point of $76,000, representing a nominal value of $1.74 billion. Additionally, 175,000 Ethereum (ETH) options expired with a Put Call Ratio of 0.94 and a maximum pain point of $2,325, totaling a nominal value of $400 million.
This week, market volatility remained low, with Bitcoin trading steadily around $78,000. The market sentiment has calmed, and short-term realized volatility has significantly decreased. The monthly expiry released nearly a quarter of margin positions, leading to a noticeable drop in implied volatility (IV) for major options. Bitcoin's major term IV fell below 40%, while ETH's short-term IV dropped below 50%, and mid-to-long-term IV fell below 60%.
Market skew remains stable, indicating a mildly bearish sentiment. Only 6% of options expired this week, with 25% set to expire by the end of May and 30% by the end of June. The lack of activity in block trades suggests a consolidation phase. In April, Bitcoin outperformed in both price and interest compared to the first quarter, while altcoins showed limited recovery, with Bitcoin remaining the primary focus for traders.
BTC and ETH Options Expiry Sees Reduced Volatility and Stable Market Sentiment
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