The crypto market is in the spotlight with Bitcoin’s options expiration and price action as we approach the end of 2024. Factors such as big investors’ predictions about price fluctuations, highly leveraged positions, and ETF inflows are shaping Bitcoin’s market performance.
Bitcoin’s resilience in option expiration times and the dynamic nature of the market continue to create new opportunities and challenges in the crypto world. Long-term strategies and market analysis can help investors succeed in this volatile environment.
Bitcoin Options Expiration$BTC
Bitcoin options, worth over $14.2 billion, expired on Dec. 27. The “maximum pain” point for the options was a scenario where most options contracts would be worthless if the price fell to $85,000. However, despite these pressures, Bitcoin performed strongly, trading above $97,330 on the last option expiration day of the year.
According to the statement made by Deribit Exchange, the total volume of Bitcoin and Ether options has reached $ 18 billion. Analysts state that the market is heavily leveraged with upward positions, and therefore any downward movement can trigger liquidations with a snowball effect. Bitcoin managed to exceed the $ 97,330 level within an hour after the options expired. This movement supported Bitcoin's correlation with the global liquidity index and the possibility of its price reaching $ 110,000 in January 2025.
However, Bitcoin’s rise is facing significant resistance at $98,000. According to Coinglass data, if this level is breached, it could result in liquidation of approximately $885 million worth of short positions across all exchanges. While this increases the likelihood of the price climbing higher, it also brings risks for investors.
Bitcoin ETFs have become a major part of price increases in 2024. According to Farside Investors data, there was a net inflow of $475 million into the ETF markets after Christmas. This inflow helped end the decline and help the market recover.
US-based spot ETFs played a major role, accounting for 75% of Bitcoin investments through 2024. Analysts predict that these investments could push Bitcoin prices to $160,000 by 2025. However, it should be noted that the impact of ETF inflows may be limited in the short term and market dynamics will also be affected by other factors.