Friday’s Crypto Options Expiration Day: Over $2 Billion at Stake
Today marks the expiration day for crypto options, with more than $2 billion worth of BTC and ETH contracts set to be settled or renewed. This week, the approval of spot ETFs has driven crypto markets higher, but can this upward trend continue?
Bitcoin Options Data Points to Major Open Interest at $50,000 Strike Price
Around 36,000 Bitcoin options contracts are expiring today, with a notional value of approximately $1.68 billion. The put/call ratio for this batch is 0.9, indicating an equal number of long and short contracts being sold by bulls and bears. The max pain point for this set is $45,000, slightly lower than the current spot market price.
Deribit reveals significant open interest at the $50,000 strike price with $1.2 billion in call options. This concentration suggests that derivatives traders anticipate a rise in BTC prices by the end of January.
Ethereum Options Expiry
In addition to the expiring Bitcoin options, there are also 262,000 Ethereum contracts expiring today. These options have a notional value of $680 million and a put/call ratio of 0.64. The max pain point for Ethereum options is $2,400.
Deribit reports substantial open interest with calls at $2,500 and $3,000 ETH strike prices.
Market Outlook and Volatility
Greek’s Live notes that Bitcoin spot ETF approvals have contributed to market volatility due to fake news and breaking news. While long-term prospects for the crypto market are positive with increasing capital inflows, there is still significant uncertainty in the short term. Sharp volatility, similar to what was seen this week, could continue for several days.
Crypto Market Performance
Despite the expiration of options contracts, crypto markets are up 1% today, with a total market capitalization of $1.86 trillion. Bitcoin is holding at $46,262, while Ethereum is trading just above $2,600.
Hot Take: Crypto Options Expiration and Market Uncertainty
Today’s crypto options expiration brings significant potential for market movement, with over $2 billion worth of contracts expiring. While the approval of spot ETFs has boosted market sentiment, uncertainty remains due to factors like fake news and breaking news causing volatility. Traders are closely watching BTC and ETH prices as they navigate this period of uncertainty. The long-term outlook for the crypto market remains positive, but short-term volatility may persist in the coming days.
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