Crucial Bitcoin Options Expiry Today: Will Massive Contracts Unleash Market Chaos?

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Table of Contents


  • Around 93,600 Bitcoin options contracts, with a notional value of $3.4 billion, are expiring today.
  • The put/call ratio of 0.51 in Bitcoin options suggests a dominance of call contracts.
  • Also, 931,610 Ethereum options contracts, with a notional value of $2.07 billion, are expiring. The put/call ratio for Ethereum is 0.31.

Today witnessed a significant expiration of Bitcoin options, with approximately 93,600 contracts expiring and a notional value of $3.4 billion. This event, coinciding with the end of the month, could generate additional selling pressure in the markets, already influenced by the decrease in Grayscale positions and cryptocurrency sales by miners.

Concerning the details of Bitcoin options, a put/call ratio of 0.51 indicates twice as many call (buy) contracts compared to put (sell) contracts. Noteworthy is the open interest at the $50,000 strike price, with 22,719 call contracts at that level. However, the short-term trend suggests that short sellers may be gaining profits, especially at the $40,000 level.

Additionally, block trades, both in buying and selling, represented 30% of the total volume. These trades, mostly composed of block liquidations and diagonal spreads, suggest that major players do not see significant short-term risk (within a month) but anticipate abrupt movements before May.

Moreover, Bitcoin is not the sole focus of this options expiration, as 931,610 Ethereum options contracts are expected to expire on the same day, January 26, with a notional value of $2.07 billion. The put/call ratio for ETH is 0.31, signaling a bearish outlook among derivatives traders.

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Bitcoin and Ethereum Suggest Short-Term Market Volatility

Despite a 0.5% increase in crypto markets in the last 24 hours, reaching a total value of $1.64 trillion, the short-term trend still indicates a correction from the recent mid-cycle rally. In the case of Bitcoin, prices managed to recover to $40,100 during the Friday Asian trading session but faced selling pressure, reaching an intraday low of $39,538 on January 25. On the other hand, Ethereum showed overall stability in the last day, standing at $2,237, though experiencing a 10% decrease over the past week.

In terms of price influences, selling pressure in Bitcoin comes from both Grayscale actions and miner sales. Furthermore, the large transfer of Ethereum to exchanges by Celsius, in preparation for distribution to creditors, is exerting bearish pressure on the ETH markets. The combination of these factors suggests a volatile short-term scenario for the crypto industry.


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