$7.8 Billion in Bitcoin Options Set to Expire on January 31

Approximately $7.8 billion in bitcoin (BTC) options are set to expire on January 31, with significant implications for market dynamics:

About $6 billion of these options will likely expire out of the money.
50% of the expiring contracts are put options, allowing holders the right to sell BTC at a predetermined price.
The max pain level is established at $98,000, indicating a potential price target as expiry approaches.
Next week's expiry includes around 74,000 contracts, contributing to a total open interest of $28 billion.
Currently, about 22.6% of options are in-the-money, which may trigger delta hedging flows.
DVOL, Deribit's implied volatility index, is at 60, consistent with year-end levels.

Recent regulatory changes enabling banks to custody bitcoin could attract institutional investment, further influencing market sentiment.