Deribit Exchange Reports Bitcoin and Ethereum Slide Below Max Pain Ahead of $4B Options Expiry

Bitcoin and Ethereum prices have dropped to mid-May levels, wiping out recent gains as geopolitical tensions rise in the Middle East. The crypto market is experiencing increased volatility with traders bracing for Friday's $4 billion options expiry. Macroeconomic factors and derivatives activity are adding to the selling pressure.

According to Deribit data, 32,000 BTC options worth $3.3 billion are set to expire, with a put-call ratio of 1.10 indicating bearish sentiment. The max pain point is at $106,000—above Bitcoin's current price of $104,806—hinting at possible liquidations or position unwinding. ethereum has 218,200 contracts worth $600 million expiring, with a 0.69 put-call ratio and a max pain level of $2,600.

Market nervousness is evident in derivatives activity: Bitcoin's 24-hour put-call ratio rose to 1.13 as traders sought downside protection. Ethereum saw higher call volume despite its put-call ratio increasing to 0.74. This options expiry comes as cryptocurrencies test critical support levels, with Bitcoin's daily range narrowing between $103,602 and $105,329.