Bitcoin and Ethereum Options Valued at $3 Billion Expire Today
As crypto markets experience the so-called "Trump rally," traders are preparing for significant price movements as nearly $3 billion in Bitcoin and Ethereum options contracts near expiration.
According to Deribit, 317,212 Bitcoin contracts valued at $2.1 billion are set to expire. The put-to-call ratio of 0.54 indicates a preference for long contracts over short ones. For Ethereum, 2,150,646 contracts worth approximately $8.36 billion are expiring, with a put-to-call ratio of 0.48, suggesting a bullish sentiment.
Both cryptocurrencies have recently gained traction due to economic data and political factors. The "maximum pain point" for Bitcoin is at $98,000, slightly below its current trading price of $100,145, which may influence the ongoing rally.
Block Call Options Trading Hits 30%
Greeks Live reported notable corrections in the crypto market over the past week, with Bitcoin showing a smaller decline compared to altcoins. Block call options trading now accounts for over 30% of the daily average.
"The recent Block call options trading accounted for a higher proportion, the daily average accounted for more than 30%. In previous years, the Christmas season in Europe and the US saw significantly reduced trading heat. This year, the influence of US stocks on crypto appears stronger, potentially maintaining momentum," said Greeks Live.
Market makers are adjusting their positions ahead of the holiday season. Although trading volume typically decreases in December, this trend may not hold due to the increasing correlation between US stock performance and crypto markets.
Bitcoin Stays Strong, Ethereum Lags Behind
Options market data reveals cautious strategies from market makers over the past two weeks, leading to a slight increase in implied volatility (IV). Many traders are opting for short-term profit-versus-profit (PVP) strategies due to the cost-effectiveness of buying options.
Currently, Bitcoin trades above $100,000, reflecting a minor decline of 0.60% in the last 24 hours but a gain of 14.40% over the past month. Factors driving this rally include the latest Consumer Price Index (CPI) report aligning with inflation expectations and anticipation of a Federal Reserve interest rate cut on December 18.
In contrast, Ethereum has not matched Bitcoin's growth this year but remains resilient. Trading above $3,875, ETH has seen a 0.80% decline in the past 24 hours, with a market cap exceeding $468 billion. Although it has not reached a new all-time high, investor optimism persists.
Since November 22, Ethereum ETFs recorded consistent inflows, totaling $1.97 billion by December 12, indicating continued long-term potential despite short-term performance lagging behind Bitcoin.