$2.6 Billion in Bitcoin, ETH, XRP, Solana Options Expire Today, Experts Raise Concerns

Crypto market recorded massive liquidations over the past few hours due to Bitcoin (BTC), Ethereum (ETH), XRP, and Solana (SOL) options expiry today. Crypto prices tumbled and pared almost all gains after bearish sentiment over the Senate committee advancing the CLARITY Act faded.

The latest US macroeconomic data, Middle East tensions, and spiking US Treasury yields, among other headwinds, are sparking Bitcoin selloff jitters.

Over $2 Billion in Bitcoin Options to Expire Today

According to Deribit data, almost 25K Bitcoin options with a notional value of more than $2 billion will expire on May 15. The put/call ratio of 0.57 indicates bullish sentiment in the crypto market.

The max pain price is at $80,000, below the current market price of $80,772. Moreover, BTC implied volatility is falling and 25 delta skew is rising sharply today. It signals that traders are turning cautious due to high odds of a drop in Bitcoin price.

In the last 24 hours, call volume is still higher than put volume, with a put/call ratio of 0.83. Deribit data shows high volume put and call options trading for the May 29 expiry, especially after the hot US CPI and PPI inflation data.

Derbit said “Compared to last week, expiry size has grown materially while put/call ratios moved even lower, showing traders continue rotating toward upside exposure.”

Trades Brace for Ethereum Options Expiry

Over 274K ETH options with a notional value of almost $622 million are set to expire today, with a put-call ratio of 0.40. The max pain point is at $2,300, above the current market price of $2,260.

The data shows traders are bullish on potential upside momentum after the latest profit taking. However, the put volume has increased significantly in the last 24 hours, with the put/call ratio bearish at 1.29.

Deribit highlighted that ETH open interest data shows outsized purchases of May 29 $2100 puts. This might trigger selloffs in ETH in the coming days, saying “alarm bells might ring.”

Meanwhile, the Senate Banking Committee advancing the CLARITY Act for further negotiations and a full Senate vote failed to trigger a surge. ETH price plunged almost 3% over the past 24 hours.

Similar to Bitcoin options, ETH implied volatility is falling and 25-delta skew is rising in the last few hours.

XRP and Solana Crypto Options Expiry

XRP options worth $2.55 million will expire today, sparking profit-taking despite Merex Group’s massive XRP ETF holdings. The put/call ratio of 1.14 and the max pain at $1.46 indicates traders are hedging for downside protection.

The 24-hour call volume is higher than put volume, with a put/call ratio of 0.99. This confirms an overall bullish sentiment, with traders opening calls on the May 22 $1.54 and $1.52 strike prices.

XRP price fell from a 24-hour high of $1.55 to $1.45 lows as traders adjusted positions for $2.6 billion in Bitcoin and ETH options expiry. Moreover, trading volume has climbed by more than 83% over the last 24 hours as XRP surpassed Bitcoin in volume on Upbit as Hana Bank acquires Dunamu stake for $670 million.

Meanwhile, $17.03 million in Solana options to expire, with a put-call ratio of 1.03. The max pain price is $86, below the current market price of $91.20.

SOL price also tanked 3% amid profit booking, with a 24-hour low and high of $90.41 and $93.58, respectively. Trading volume has dropped further by 12% over the last 24 hours.

Experts Warn of Potential Bitcoin, ETH, XRP, Solana Selloff

Bitcoin still lacks fresh capital inflows to break decisively above $80,000. Glassnode data show current capital inflows are weaker than in past bull phases, limiting the odds of a strong breakout.

Bitcoin, ETH, XRP, and Solana jumped as the Senate committee passed the CLARITY Act. However, the positive sentiment quickly faded as traders are bracing for today’s crypto options expiry.

Moreover, falling expectations for Fed rate cuts, uncertainty surrounding US-Iran peace talks, and 10-year US Treasury yields (US10Y) rising above 4.5% are turning traders cautious. Short-term holders are selling into every rally. “This is not just technical resistance. It is behavioral supply,” said on-chain experts Axel Adler Jr.

Crypto market expert BIT noted that accelerating inflation since last year has weighed on Bitcoin. This has caused BTC to underperform versus Nasdaq.

“The latest U.S. inflation data appears to have caught parts of the market off guard, even though our own models had already pointed to a renewed pickup in price pressures,” BIT added.