The critical subject of high-volume options expiration in the crypto derivatives market has become the focus for traders this week, culminating on Friday, January 16. The expiration of Bitcoin and Ethereum options, with a total notional value of approximately $2.8 billion, is being closely watched for potential impacts on price behaviors. Despite market recovery since the beginning of the week, the calm demeanor in derivatives points to a reduced likelihood of a dramatic impact on spot prices. Experts interpret the current scenario more as a short-term reaction than a strong directional shift.
Bitcoin Options: Seeking Balance at Expiry
Today, around 25,000 Bitcoin option contracts are reaching their expiry, with a total notional value of $2.4 billion. The put/call ratio of 1.2 suggests a slight dominance of selling positions. The “max pain” level is positioned around $92,000, indicating that if prices stay close to this level at maturity, a significant portion of options might close in profit.
Open position data clearly reveals the levels where the market is focused. Notably, there is an open position of approximately $2.2 billion at a $100,000 exercise price on Deribit, along with an additional concentration of $1.2 billion at the $75,000 level. Across all exchanges, the total open interest for Bitcoin options has reached $39 billion, as per Coinglass data.
As the price reapproaches $97,000, the lack of a significant increase in futures trading volume and restricted implied volatility indicate the market’s cautious stance. Greeks Live highlights that the derivatives market has not entered a structural bullish phase, viewing the movement more as a short-lived response to sudden price hikes.
Ethereum and Spot Market Outlook
In addition to Bitcoin options, around 131,000 Ethereum options are also expiring today. These options have a total notional value of $436 million, with the max pain point calculated at $3,200. The put/call ratio hovering close to 1 indicates relatively balanced positioning between buyers and sellers. The total open interest for Ethereum options is around $9 billion.
On the broader market front, the total market value fell slightly over the past 24 hours to $3.32 trillion, though it maintained a 4% weekly increase. Bitcoin drew back to $95,670 during the Asian session, while Ethereum retreated to the $3,300 range following sales just below $3,400. Most altcoins displayed weak sentiment, whereas Tron diverged with a limited rise. More distinct losses were observed for XRP, Dogecoin, Cardano, and Monero.