YEREVAN (CoinChapter.com) — Today marks the expiration of Bitcoin (BTC) and Ethereum (ETH) options contracts worth approximately $3 billion. This significant event coincides with the week leading up to Donald Trump’s inauguration as the next U.S. President.
According to Deribit, 21,664 Bitcoin contracts with a notional value of about $2.2 billion are set to expire. The put-to-call ratio for these contracts is 0.94, signaling relatively balanced market sentiment. The maximum pain point, the price at which the most contracts expire worthless, is $96,000. Meanwhile, Bitcoin has surpassed the $100,000 mark, adding to the market’s anticipation.
Bitcoin Options Expiry Chart. Source: DeribitSimilarly, 182,454 Ethereum contracts worth around $612.2 million will expire today. Ethereum’s put-to-call ratio of 0.36 suggests a stronger bullish outlook compared to Bitcoin. The maximum pain point for Ethereum contracts is $3,250, making this level critical for traders.
Ethereum Options Expiry Chart. Source: DeribitMarket Volatility Expected Amid Expiry
The expiration of such a large volume of options is expected to cause significant price volatility. Historically, options expiry often triggers rapid price movements as traders adjust their positions. The put-to-call ratios for both Bitcoin and Ethereum indicate optimism, with more traders betting on price increases.
Bitcoin’s rise above $100,000 reflects this positive sentiment. Analysts from Greeks.live attribute the rally to expectations surrounding Trump’s pro-crypto stance.
“Trump will officially take office as the new US President next week, and it is worth keeping an eye on whether or not he will enact policies directly favorable to cryptocurrencies this month,”
they shared on X.
Jan 17 Options Data Overview. Source: Greeks.liveThe analysts also point out that the Federal Reserve’s expected decision to maintain interest rates could further boost confidence in cryptocurrencies.
BTC Open Interest Breakdown. Source: Greeks.liveBitcoin: Regional Trading Patterns and Short-Term Volatility
Global trading behavior has played a role in Bitcoin’s recent price movements. According to Greeks.live, traders in Asia and Europe sold Bitcoin earlier, causing a price dip. However, American traders bought the dip, reversing the trend.
“Asia and EU sold BTC today, and then the Americans bought it all back up on the lows, turning a red day into a green day for BTC,”
noted Greeks.live.
Short-term implied volatility (IV) has risen, indicating heightened uncertainty in the market. Analysts highlight the potential impact of cryptocurrency ETFs and policy changes under the new administration.
Current Prices and Market Outlook
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