📊 More than $1.9 billion worth of Bitcoin options expire today, how will the market respond?
This Friday, more than $1.9 billion worth of Bitcoin options will expire! This is the first time in 2025, and everyone is curious about how the market will react.
Although the notional value of these options exceeds $1.9 billion, they are actually only a small part of the large-scale maturities last week, so the impact on the spot market may not be significant. However, this week's call/put ratio is 0.59, indicating that there are more sellers of call contracts than puts, which may mean that the market is still optimistic.
Data from Deribit shows that open interest (that is, options that have not expired) is the highest at a strike price of $120,000, with a notional value of nearly $1.4 billion. This shows that derivatives traders are still very bullish on Bitcoin, and they have open contracts with higher strike prices.
According to a report by Deribit insights on January 2, the trading market has continuously shown optimistic signals, but this is also a bit like the situation before the recession. The options market has similarly mixed messages, with short-term volatility for Bitcoin (BTC) still slightly leaning toward out-of-the-money puts, while longer-dated volatility has shown an increased bullish bias.
In addition to Bitcoin options, about 205,000 Ethereum contracts expired today, worth $710 million. This brings the total value of crypto options expiring on Friday to about $2.6 billion.
Looking ahead to the market, $160 billion has poured into the cryptocurrency market since the beginning of the year, with total capitalization reaching $3.56 trillion. Bitcoin performed well, rising 1.7% in early Asian trading on Friday, reaching a high of nearly $97,000. Ethereum also performed well, rising as much as 2% on the day, with prices approaching $3,500.
Altcoins rose almost across the board this Friday, with most altcoins posting daily gains that exceeded Bitcoin. It seems that the market is still quite active, so let's pay attention to the impact of today's options expiration on the market!
