$18 Billion in Bitcoin and Ethereum Options Set to Expire Today
As 2024 approaches, the crypto market anticipates a record Bitcoin options expiry. Derivatives data indicates that $18 billion in Bitcoin and Ethereum options will expire today amid market volatility and expectations of a Santa Claus rally.
Bitcoin Options Expiry Details
According to Deribit, 88,537 Bitcoin options contracts will expire today, a volume four times greater than last week, totaling $14.38 billion. The maximum pain price for these options is $85,000, with a put-to-call (P/C) ratio of 0.69, suggesting positive sentiment as more call options are purchased. However, historical trends show an increase in the put-call ratio during Q4, indicating potential hedging strategies among traders. David Lawant, Head of Research at FalconX, noted:
“Demand for downside protection has been rising for a few weeks now, perhaps partially fueled by players looking to protect their 2024 calendar year performance metrics. The put/call ratio on December 27 options open interest doubled from 0.35 in October to over 0.70 currently.”
$3.7 Billion in Ethereum Options Expiring Today
Ethereum options expiring today total $3.7 billion, with a max pain point of $3,000 and a put-call ratio of 0.41. This ratio has significantly decreased from 0.97 in October, reflecting a rise in ETH prices after Donald Trump's November victory.
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Photo: Deribit
- Over the past week, Bitcoin and Ethereum have experienced significant turbulence. Bitcoin's price has declined over 11% from its all-time high and currently finds support at $95,000. Analysts warn that if BTC loses this support, it could drop to $70,000 by January 20, coinciding with Trump's inauguration. Meanwhile, Ethereum faces selling pressure, having corrected over 17% after failing to maintain a price above $4,000, with predictions of a dip below $3,000 before a potential rally.
As Donald Trump prepares to take office, he is anticipated to be the most crypto-friendly president in US history, while Elon Musk's advocacy for digital assets may further stimulate market momentum.