{"id":36595,"date":"2025-01-17T06:32:19","date_gmt":"2025-01-17T06:32:19","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=36595"},"modified":"2025-01-17T06:32:19","modified_gmt":"2025-01-17T06:32:19","slug":"how-will-markets-react-to-2-8b-crypto-options-expiring-today","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=36595","title":{"rendered":"How Will Markets React to $2.8B Crypto Options Expiring Today?"},"content":{"rendered":"

Approximately 21,600 Bitcoin options contracts will expire on Friday, Jan. 17, and they have a notional value of around $2.2 billion.<\/p>\n

This week\u2019s expiry event is slightly larger than last week\u2019s<\/a>, so it is unlikely to have any major impact on crypto markets. Bitcoin has bounced back from its dip to $90,000 and is trading back in six-figure territory again.<\/p>\n

Bitcoin Options Expiry<\/h2>\n

This week\u2019s batch of Bitcoin options contracts has a put\/call ratio of 0.94, which means that bulls and bears are evenly matched with similar numbers of long (call) and short (put) contracts expiring.<\/p>\n

Open interest, or the value or number of BTC options contracts yet to expire, is highest at the $120,000 strike price, which is increasing by $1.8 billion in OI, according<\/a> to Deribit.<\/p>\n

There is also over $1.3 billion in OI at the $110,000 and $1.2 billion at $110,000 strike prices, with derivatives speculators remaining bullish.<\/p>\n

On Jan. 16, the team at crypto derivatives provider Greeks Live said<\/a> they were \u201cpredominantly bullish,\u201d with most traders expecting continuation toward $110,000, but there was some caution about overextension.<\/p>\n

Key levels were major resistance at the all-time high of $108,000 and $99,000 as support, \u201cwith some disagreement on whether a pullback to $90,000 is possible in the near term.\u201d<\/p>\n

It added that multiple traders were holding $108K short calls for the January 24 expiry while acknowledging significant upside risk.<\/p>\n

<\/a>BTC OI by expiry. Source: Deribit<\/p>\n

In a separate post, Greeks said that \u201cthe implied volatility (IV) differential between January and March has declined, with the market given to anticipating greater uncertainty as Trump nears his inauguration.\u201d<\/p>\n

Meanwhile, Deribit commented that the US PPI and CPI inflation data helped BTC spot markets climb higher on the macro front, adding that \u201cthe March $120,000 calls, bought when BTC was trading at $95,000, pushed IV higher as they were accumulated.\u201d<\/p>\n

In addition to today\u2019s Bitcoin options, around 182,000 Ethereum contracts are expiring as well. These have a notional value of $617 million and a put\/call ratio of 0.35. This brings Friday\u2019s combined crypto options expiry notional value to around $2.8 billion.<\/p>\n

Crypto Markets March Higher<\/h2>\n

Crypto market capitalization reached $3.73 trillion this Friday, primarily driven by Bitcoin, which gained<\/a> 2% on the day.<\/p>\n

BTC hit an intraday high of $102,000 during early trading in Asia on Friday morning, bringing its weekly gains to just under 10%.<\/p>\n

Ethereum remained lackluster, failing to make any progress above $3,400 as the ETH\/BTC ratio widened again.<\/p>\n

Ripple\u2019s XRP<\/a> came within a whisker of its all-time high at $3.38, while Solana (SOL), Cardano (ADA), Hedera (HBAR), and Chainlink<\/a> (LINK) were also performing well today.<\/p>\n

The post How Will Markets React to $2.8B Crypto Options Expiring Today?<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Approximately 21,600 Bitcoin options contracts will expire on Friday, Jan. 17, and they have a notional value of around $2.2 billion. This week\u2019s expiry event is slightly larger than last week\u2019s, so it is unlikely to have any major impact on crypto markets. Bitcoin has bounced back from its dip to $90,000 and is trading […]<\/p>\n","protected":false},"author":0,"featured_media":36596,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-36595","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/36595"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=36595"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/36595\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/36596"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=36595"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=36595"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=36595"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}