2.4 billion dollars worth Bitcoin and Ether options expire on May 3, maximum BTC loss at $61,000

Bitcoin and Ether options contracts worth a total of $2.4 billion will expire on May 3, which could lead to increased volatility in the market.

A Bitcoin option contract is a derivative contract that allows traders to speculate on Bitcoin price movements without owning Bitcoin. There are two types: call and put options. Call options give traders the right to buy cryptocurrency at a certain price before a certain date. Put options give traders the right to sell cryptocurrency at a certain price before the expiration date.

Disturbing statistics in cryptocurrencies!

Traders often use the put/call ratio as a metric to assess the overall state of the market. If traders are buying more puts than puts, this is considered a bearish sign, while if they are buying more calls than puts, market sentiment is considered bullish. A put-to-call ratio below 0.7 is considered bullish, while a put-to-call ratio above 1 is considered bearish.

A total of 23,367 Bitcoin contracts worth $1.39 billion will expire on May 3. Data from the Deribit exchange reveals that the put/call ratio for Bitcoin options contracts is currently 0.5 and the maximum pain point is $61,000. The maximum pain point refers to the price at which the asset will cause financial losses for the largest number of holders.

Similarly, a total of 334,248 Ether contracts with a notional value of $1 billion are expected to expire on Friday. These expiring contracts have a put-to-call ratio of 0.37 and a maximum point of $3,000. Option expiries have historically been followed by short-term price fluctuations in the spot crypto market. Bitcoin and Ether have experienced bearish pressure over the past few weeks.

BTC price fell below $60,000, marking a post-halving weekly correction of almost 20 percent. The price of Ether also fell below $2,900. The crypto market usually bounces back from the volatility caused by options a few days before expiration.