The cryptocurrency derivatives market is making headlines again as more than $3.3 billion worth of Bitcoin (BTC) and Ethereum (ETH) options contracts are set to expire today. This massive expiry could lead to short-term price volatility in both digital assets—especially after Bitcoin hit a new all-time high just a day earlier.

Bitcoin Hits New Highs, But Expiry Could fuel Pullback

Bitcoin reached a new peak of $111,917 yesterday, according to market data. At the time of writing, the price has slightly dropped to $110,787, but bullish sentiment continues to dominate.

Today’s expiring Bitcoin options alone account for a notional value of $2.8 billion. With over 25,000 open contracts, traders are watching closely to see how prices will react.

Options data from Deribit shows 11,435 call contracts versus 14,004 put contracts—a put-to-call ratio of 1.22. This suggests more traders are betting on a short-term decline or protecting their positions in case of a drop.

Max Pain Theory in Focus

A widely observed concept in the options market is the Max Pain Price—the level at which the highest number of contracts expire worthless, causing maximum financial pain to the majority of option holders. For Bitcoin, the current max pain price is around $104,000, which is below its current trading level.

Analysts suggest that as the market nears the expiry window, prices might gravitate toward this level. However, this is not guaranteed and depends heavily on market momentum and investor sentiment.

Ethereum Also Faces Major Expiry Pressure

Ethereum isn’t far behind in the derivatives game. Over 201,000 ETH options contracts—worth more than $542 million—are also expiring today. Like Bitcoin, ETH’s options landscape shows bearish tilt, with 112,565 put contracts against 88,602 call contracts. The put-to-call ratio stands at 1.27.

Ethereum is currently trading at $2,693, reflecting a 2.6% gain in the last 24 hours. However, the max pain price for ETH is $2,450, also lower than its current price.

Ethereum Lagging Behind Bitcoin?

One notable trend is Ethereum’s relative underperformance when compared to Bitcoin. While BTC soared to new all-time highs, ETH has yet to break past the $3,000 resistance level.

“Despite optimistic projections that ETH could reach $3,000 by June, it hasn’t yet mirrored Bitcoin’s breakout performance,” said analysts at Greek.live.

Short-Term Volatility Likely, But Bullish Long-Term Outlook

Though today’s options expiries could trigger short-term swings, the broader market narrative remains optimistic. The open interest in crypto derivatives remains high, signaling strong investor engagement.

Greek.live analysts forecast a potential correction of 15–20% in the near term, with downside targets between $100,000–$103,000 for Bitcoin. This is not uncommon following strong rallies, especially when derivatives are heavily involved.

The firm also emphasized the importance of negative funding rates—fees paid by traders for holding long or short positions—which currently reflect skepticism among traders despite bullish price action.

“Negative funding rates indicate that many traders are still betting against the rally,” the analysts said. “This increases the chances of a short squeeze, where forced liquidations can push prices higher.”

What Traders Should Watch Next

With over $3.3 billion in contracts expiring, today’s market behavior could set the tone for the next leg in crypto’s ongoing bull run.

Key Support and Resistance Levels

• Bitcoin Support: $110,000

• Bitcoin Resistance Targets: $120,000, $150,000, and $200,000

• Ethereum Max Pain Price: $2,450

• Ethereum Resistance: $2,900, with eyes on $3,000 in June

While today may bring some turbulence, experienced investors understand that option expirations are part of the crypto market cycle. Traders will likely reposition for the next month, adapting to any short-term corrections and preparing for the broader trends ahead.

Final Thoughts: Stay Calm Amid the Noise

Crypto markets are inherently volatile, and days like today underscore why traders need to remain level-headed. The expiration of Bitcoin and Ethereum options can cause rapid moves, but it doesn’t necessarily signal a trend reversal.

With strong macro indicators—such as institutional inflows, rising futures interest, and the excitement around Ethereum ETFs—both assets still hold bullish potential in the medium to long term.

As always, risk management is crucial. Whether you’re a retail investor or managing a fund, understanding derivatives and their impact on prices will help you navigate the crypto waters with more confidence.