According to data from Deribit, a major futures exchange, Bitcoin (BTC) options worth $1.18 billion are set to expire on May 17. Ethereum (ETH) options worth $950 million are also expiring on this day.

Bitcoin Options

As of now, Bitcoin's put/call ratio is 0.61, with a maximum pain point at $62,500. A put/call ratio of 0.61 suggests that the number of put and call positions is nearly equal, indicating a balance between short and long positions. Analysts note that if this ratio were 0.70 or higher, it would mean more investors are buying puts, expecting the price to drop. Conversely, a ratio of 0.50 or lower would indicate a bullish sentiment, with more investors buying calls.

Ethereum Options

For Ethereum, the put/call ratio is 0.21, which signals a bullish trend among investors. If Ethereum's price falls below the maximum pain point by the end of the day, many investors could face substantial losses. At the moment, Bitcoin is trading at $66,443, which is above the maximum pain point, suggesting that a significant drop in price might be unlikely. However, Ethereum is trading at $3,018, close to its maximum pain point, putting investors at higher risk.

Expert Insights

Experts from Greeks.live and other analysts have observed that while Bitcoin maintains a balance between long and short positions, Ethereum's weakness is causing concern in the market. Despite this, there is optimism about Ethereum's future, with increased investments targeting $3,600 expected in the coming weeks. This optimism is partly due to the anticipation of the SEC's decision on several Ethereum ETF applications, which, if approved, could boost ETH's price.

Conclusion

The expiry of significant Bitcoin and Ethereum options on May 17 is a crucial event for the market. While Bitcoin shows a balanced position between long and short investments, Ethereum's closer proximity to the maximum pain point poses a higher risk for its investors. Nevertheless, future expectations and potential SEC approvals could positively impact Ethereum's price, offering opportunities for gains.