Friday has arrived again, and that means another round of Bitcoin and Ether options contracts are expiring, while spot markets have been steadily rising this week.
About 25,000 Bitcoin options contracts expire on Friday, January 16, with a notional value of approximately $2.4 billion. This expiration event is slightly larger than last week’s, but derivatives trading remains sluggish so it is unlikely there will be any impact on spot markets.
Crypto markets have gained around $130 billion since the start of the week, with the majors hitting their highest levels in two months despite the delay in Senate boost to market structure legislation in the United States.
Bitcoin options expire
This week’s tranche of Bitcoin options contracts has a put/call ratio of 1.2, meaning the number of expiring calls (longs) is slightly lower than puts (shorts). According to Coinglass, the max pain is around $92,000, which is pretty close to current spot prices, so many will be in the money at expiration.
Open interest (OI), or the value or number of Bitcoin options contracts yet to expire, remains highest at $100,000, which at this strike price on Deribit amounts to $2.2 billion. About $1.2 billion of OI remains from $75,000 as bears continue to short this asset.
The total OI of BTC options across all exchanges is still rising and stands at $39 billion.
Despite Bitcoin’s return to $97,000, futures volume did not see a significant increase, and implied volatility (IV) for major expirations did not recover substantially. reported Greeks Live this week.
“The derivatives market has not yet entered a structurally bullish phase. The current trading structure looks more like a reactive response to the sudden surge, with the long-term outlook still not shifting to a bull market.”
In addition to the current crop of Bitcoin options, there are also approximately 131,000 Ethereum contracts expiring, with a notional value of $436 million, a max pain of $3,200, and a put/call ratio of 1. The total OI of ETH options across all exchanges is approximately $9 billion.
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This brings the total notional value of crypto options expiration to approximately $2.83 billion.
Spot Market Outlook
The total market cap fell slightly over the past 24 hours to $3.32 trillion, but is still up 4% from the same time last week.
Bitcoin reached $97,000 twice on Thursday, but resistance was too strong, resulting in a drop to $95,670 during the Asian trading session on Friday morning. Ether had a similar move, just below $3,400, but also retreated to trade at just over $3,300 at the time of writing.
The altcoins were mainly in the red, apart from Tron with a gain of 2.4%. XRP, Dogecoin, Cardano and Monero saw bigger losses.
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