Tense hours on Bitcoin and Etherum: This data is very important!

$2.4 billion worth of Bitcoin and Ether options are set to expire on May 3, with a maximum BTC loss of $61K

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

Bitcoin options contract is a derive contract that allows traders to speculate on Bitcoin price movements without owning Bitcoin put options. Call options give investors the right to acquisition cryptocurrencies at a specific price before a certain date. Put options, on the other hand, give investors the right to sell cryptocurrencies at a specific price before the expiry date.

Unsettling statistic on Crypto coins!

Traders often use the put/call ratio as a metric to assess the overall state of the market. If investors are buying more put options than put options, this is considered a sign of fall, while if they are buying more call options than put options, it is considered a market sentiment rise. A put-to-call ratio below 0.7 is rise, and a score above 1 is taken as a fall indicator.

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, with a maximum pain point of $61,000. The maximum pain point refers to the price at which the asset will result in financial losses for the largest number of holders.

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

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making decisions.