December 13, 202408:48 GMT+3
Today is Friday, the day of expiration for cryptocurrency options. Nearly $3 billion in Bitcoin *BTCUSD and Ethereum *ETHUSD contracts are set to settle or roll over today. Crypto markets have been riding the so-called Trump rally for the past few weeks, but can they continue?
Cryptocurrency options expiration often results in significant price fluctuations, prompting traders and investors to closely monitor the day's developments.
$2.72B in Bitcoin and Ethereum Options Expire
Derybit Report: 20,815 Bitcoin contracts, with a notional value of $2.077 billion, are set to expire today. The call-to-buy ratio stands at 0.83, indicating that traders continue to sell more long contracts (contracts) than short contracts (contracts).
The maximum pain point (the price that will cause financial losses to the largest number of holders) is $98,000. It is worth noting that this is slightly lower than the current spot market price of $99,758.
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Meanwhile, 164,330 Ethereum options contracts, with a notional value of nearly $644 million, are also set to expire today. The call-to-put ratio is 0.68, indicating that, like Bitcoin, traders are selling more long contracts than short ones.
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Grix Live commented that the market this week has been dominated by corrections, unlike last week, which saw a smaller correction for Bitcoin and a stronger correction for altcoins. With Christmas and annual deliveries approaching, market makers have started to move positions.
“The recent trading of Blockchain options has been higher, with the daily average being more than 30%. In previous years, the Christmas season in Europe and the United States has seen a significant drop in trading temperatures. This year, the influence of US stocks on cryptocurrencies is on the rise, and this phenomenon may be more pronounced,” said Grex Live.
This raises the question of whether there will be a Christmas rally this month, as the market has once again returned to a stronger divergence mode. Currently, Bitcoin is hovering below $100,000, while Ethereum is hovering near $4,000.
Options market data over the past two weeks has shown that market makers are more cautious. Amidst the sharp market volatility, there have been small increases in the underlying implied volatility (IV). In this context, analysts at Greeks.live say that options are currently very suitable for short-term play.
“It is still very expensive to buy options in a cost-effective manner,” they added.
Meanwhile, these expiring options come after a busy week in terms of US economic data. US inflation rose to 2.7% in November, with the core CPI remaining steady at 0.3%. While a Fed rate cut is widely expected, stubborn inflation is complicating the path for sustained monetary easing.