{"id":5888,"date":"2025-01-03T06:48:39","date_gmt":"2025-01-03T06:48:39","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=5888"},"modified":"2025-01-03T06:48:39","modified_gmt":"2025-01-03T06:48:39","slug":"how-will-markets-react-to-2b-bitcoin-options-expiring-today","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=5888","title":{"rendered":"How Will Markets React to $2B Bitcoin Options Expiring Today?"},"content":{"rendered":"
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Approximately 20,000 Bitcoin options contracts will expire on Friday, Jan. 3, in the first such event of 2025.<\/p>\n

They have a notional value of $1.93 billion, which is a fraction of last week\u2019s mammoth end-of-year expiry event, so the impact on spot markets is likely to be minimal.<\/p>\n

Bitcoin Options Expiry<\/h2>\n

This week\u2019s batch of Bitcoin<\/a> options contracts has a put\/call ratio of 0.68, meaning that there are more long (call) contracts expiring than short (put) contract sellers.<\/p>\n

Open interest, or the value or number of options contracts yet to expire, is highest at the $120,000 strike price, with $1.4 billion in OI, according<\/a> to Deribit. There is also $1.3 billion in OI at $110,000, so derivatives traders remain bullish with open contracts at higher strike prices.<\/p>\n

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Bitcoin options OI by expiry. Source: Deribit<\/figcaption><\/figure>\n

On Jan. 2, Deribit reported<\/a> that the continuous trading market, or perpetual swaps, is showing more optimistic signals, similar to what was seen before the recent downturn.<\/p>\n

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\u201cOptions markets report a similarly mixed message: BTC\u2019s short-tenor volatility smiles remain slightly more skewed toward OTM puts, while longer tenors have increased their bullish tilt.\u201d<\/p>\n<\/blockquote>\n

It added that December\u2019s end-of-year expiration of a significant proportion of the market\u2019s OI in options \u201cdid not result in the fireworks that some expected.\u201d<\/p>\n

Earlier this week, crypto derivatives provider Greeks Live observed<\/a> that a major short call position had been put on Bitcoin with a notional value of $42 million. The speculator is betting that BTC will not exceed $150,000 by March 28 and stands to net $900,000 from the bet if successful.<\/p>\n

In addition to today\u2019s Bitcoin options, around 205,000 Ethereum contracts are expiring today. These have a notional value of $710 million and a put\/call ratio of 0.82.<\/p>\n

This brings Friday\u2019s combined crypto options expiry notional value to around $2.6 billion.<\/p>\n

Crypto Market Outlook<\/h2>\n

Around $160 billion has entered crypto markets since the beginning of the year on Wednesday, lifting total capitalization to $3.56 trillion.<\/p>\n

Bitcoin has had a solid 24 hours, gaining 1.7% to stand close to the $97,000 level during early trading in Asia on Friday. However, it remains range-bound and needs to clear resistance at the psychological $100,000 level to see further momentum.<\/p>\n

Meanwhile, Ethereum, which has been predicted to perform well<\/a> this quarter, has fared better, gaining 2% on the day as it approaches the $3,500 price level. ETH needs to clear $3,600 to break resistance and notch further gains.<\/p>\n

The altcoins<\/a> were pretty much all in the green this Friday, with most of them outpacing Bitcoin on daily gains.<\/p>\n

The post How Will Markets React to $2B Bitcoin Options Expiring Today?<\/a> appeared first on CryptoPotato<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Approximately 20,000 Bitcoin options contracts will expire on Friday, Jan. 3, in the first such event of 2025. They have a notional value of $1.93 billion, which is a fraction of last week\u2019s mammoth end-of-year expiry event, so the impact on spot markets is likely to be minimal. Bitcoin Options Expiry This week\u2019s batch of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-5888","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/5888","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5888"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/5888\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5888"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5888"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5888"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}