$2.2B in Bitcoin and Ethereum Options Expire With Bullish Outlook, but There’s a Catch
Over $2.2 billion worth of Bitcoin and Ethereum options expired with a moderately bullish outlook. The crypto market has experienced a volatile week, with prices initially rising but then quickly dropping due to ongoing macroeconomic challenges.
Adding to this tumultuous week is a significant options expiry. While the data suggests a moderately bullish sentiment, there is a catch.
$2.2B in Bitcoin and Ethereum Options Expire
By 8:00 UTC on Friday, January 10, over $2.2 billion worth of Bitcoin and Ethereum options expired. In particular, the Bitcoin market saw 19,000 BTC options worth $1.81 billion expire, with a put-call ratio of 0.65 and a maximum pain point of $97,000.
Meanwhile, the Ethereum market saw the expiry of 141,000 ETH options worth $460 million, with a put-call ratio of 0.48 and a maximum pain point of $3,450.
The expiry of options contracts with put-call ratios below 0.7 indicates a bullish sentiment, especially for Ethereum. This suggests that for every five put options, there are approximately ten call options.
According to the max pain theory, Bitcoin’s price is expected to increase towards $97,000, while Ethereum is expected to gravitate towards $3,450 as market makers adjust their positions to minimize losses.
For reference, Bitcoin is currently trading at nearly $95,000, while Ethereum is trading around $3,300.
Despite this seemingly positive data, recent market weakness may give traders pause in the coming weeks, according to options trading kit provider Greeks.live.
Bitcoin dropped nearly 11% this week, falling from almost $103,000 to as low as $91,000. Similarly, Ethereum experienced a decline of nearly 14%, dropping from about $3,700 to $3,200. This market decline was driven by stronger-than-expected U.S. job numbers, which reduced expectations of interest rate cuts.
All Eyes on Bitcoin and ETF Inflows?
In light of the macroeconomic challenges, traders will be closely watching Bitcoin’s price action and ETF flows in the coming week to adjust their positions.
Greeks.live noted that while the upcoming inauguration of Donald Trump may provide some tailwinds, there is a need for more long-term benefits. Trump’s election victory was a major catalyst for the crypto market’s rally in Q4 2024, as investors anticipated favorable regulatory conditions.
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