Billions of dollars in Bitcoin (BTC) and Ethereum (ETH) options are nearing their expiration date, as reported by Greeks.live. Approximately 23,000 BTC options are close to expiring, with a put-call ratio of 0.49, totaling a notional value of $1.4 billion.

The "max pain" point for Bitcoin options is predicted to be approximately $61,000, indicating the price level where the highest number of puts and calls converge. This scenario implies that market participants on both sides of the trade would incur significant losses at this specific price level.

The concept of "maximum pain" suggests that option prices tend to gravitate towards the price point with the most open options contracts, leading to a situation where a large number of puts and calls expire without value. Typically, only a small fraction of options (around 10%) are exercised.

Moreover, 330,000 ETH options are also approaching expiry, with a put-call ratio of 0.36 and a "max pain" point currently set at $3,000, carrying a notional value of $1 billion.

Greeks.live highlighted a bearish market sentiment attributed to substantial outflows from Bitcoin exchange-traded funds, which were not offset by newly introduced Hong Kong-based ETFs. Consequently, the implied volatility (IV) across major terms has been decreasing, reaching levels comparable to those seen during the winter bull market.

CoinGlass data reveals that the total interest in Bitcoin options amounts to $17.6 billion, with Deribit being the primary contributor to this figure. In the case of Ethereum, the total options interest stands at $7.6 billion.

Presently, Bitcoin and Ethereum are trading at $59,199 and $2,969, respectively, according to CoinGecko.