The cryptocurrency market is set to experience a significant options expiry event on January 16, with approximately 25,000 Bitcoin options contracts, valued at $2.4 billion, reaching maturity. Despite the size of this expiry, derivatives trading activity remains subdued, suggesting minimal impact on spot markets. Bitcoin's options contracts have a put/call ratio of 1.2, indicating a slight predominance of puts over calls, with max pain around $92,000, close to current spot prices.
In addition to Bitcoin, around 131,000 Ethereum contracts, worth $436 million, are also expiring, bringing the total notional value of crypto options expiry to $2.83 billion. The total open interest for Bitcoin options across exchanges is climbing, currently at $39 billion, with significant interest at the $100,000 strike price. Despite Bitcoin's recent price movements, futures volume and implied volatility have not seen substantial increases, indicating a reactive rather than bullish market structure.
Overall, the total crypto market capitalization has slightly decreased over the past 24 hours to $3.32 trillion, though it remains up 4% from the previous week. Bitcoin and Ethereum have both faced resistance at recent highs, with Bitcoin retreating to $95,670 and Ethereum trading just above $3,300. Altcoins have mostly seen declines, except for Tron, which posted a 2.4% gain.
Crypto Markets Brace for $2.8 Billion Options Expiry
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