On May 31, a significant event in the cryptocurrency market saw the expiry of 69,000 Bitcoin options worth $4.7 billion and 920,000 Ether options worth $3.5 billion. Historically, the expiration of such a large volume of crypto options contracts tends to trigger price volatility in the market.

According to data from Deribit, the put/call ratio (PCR) for the expired Bitcoin options is 0.61, indicating that more call options (long contracts) expired than put options (short contracts). For Ether options, the PCR stands at 0.46. Generally, a PCR below 0.7 signals strong bullish sentiment, whereas a PCR above 1 suggests bearish sentiment.

The maximum pain point, which is the price at which the most losses would be incurred by leveraged traders, for Bitcoin is $66,000. Currently, Bitcoin is trading at $68,210, which is $2,000 above this pain point. For Ether, the max pain point is $3,300, while it is trading at $3,738, over $400 above its pain point.

Significant open interest (OI) exists in long positions for Bitcoin at strike prices of $70,000, $75,000, $80,000, and even $100,000. Open interest refers to the total number of outstanding derivative contracts that have not yet been settled. Notably, there are $886 million in OI for Bitcoin with a target price of $100,000, highlighting the substantial number of long positions.

The total notional value of all outstanding Bitcoin options contracts is $19 billion, reflecting the considerable size of the market.

A significant recent development was the approval of a spot Ether ETF by the Securities and Exchange Commission (SEC) in May, which was a bullish event for the crypto market. This led to a 20% rise in Ether prices in anticipation of the approval. However, the SEC only approved the 19b-4 filing, delaying the actual listing for trading.

Since the SEC's approval, the crypto market has experienced a bearish sideways movement, with Ether struggling to break above $4,000 and Bitcoin below the $70,000 threshold. Currently, the market is experiencing bearish momentum, correcting from the bullish surge of the past two weeks.

As the options contracts expire, the market may see increased volatility. Traders will be closely watching these movements, especially given the significant volume of options expiring and the prevailing market sentiment indicated by the PCR.