$2.2B in Bitcoin and Ethereum Options Expire With Bullish Outlook, but There’s a Catch

Over $2.2 billion in Bitcoin and Ethereum options expire with moderately bullish outlook.

Crypto assets have had a whirlwind week marked by optimism and despair. Prices started off strong, only to rapidly shed all of the previous week’s gains amid continued macroeconomic headwinds.

Capping off this whirlwind week is a significant options expiry. While the data appears to be moderately bullish, there is a catch.

$2.2B in Bitcoin and Ethereum Options Expire

Over $2.2 billion in Bitcoin and Ethereum options expired by 8:00 UTC on Friday, January 10. Specifically, the Bitcoin market saw 19,000 BTC options worth $1.81 billion expire with a 0.65 put-call ratio and a max pain point of $97,000.

Meanwhile, the Ethereum market saw the expiry of 141,000 ETH options worth $460 million with a put-call ratio of 0.48 and a max pain point of $3,450.

The expiry of the options contracts with put-call ratios below 0.7 suggests bullish sentiment, especially for Ethereum, as it suggests that for every five puts, there are roughly ten calls.

Further, per the max pain theory, Bitcoin’s price is supposed to edge higher toward $97,000 while Ethereum gravitates toward $3,450 as market makers adjust their position to minimize losses.

For context, Bitcoin is currently exchanging hands for nearly $95,000, while Ethereum trades around $3,300.

Despite this seemingly positive data, recent market weakness may offer traders pause for thought in the coming weeks, according to options trading kit provider Greeks.live.

This week, Bitcoin dropped nearly 11% from almost $103,000 to as low as $91,000. On the other hand, Ethereum tanked nearly 14% from about $3,700 to $3,200. The market decline came as stronger-than-expected U.S. job numbers doused interest rate cut expectations.

All Eyes on Bitcoin and ETF Inflows?

Amid the macroeconomic headwinds, Greeks.live has noted that traders will look to Bitcoin’s price action and ETF flows in the coming week to recalibrate their positions.

Greeks.live noted that while Donald Trump’s looming inauguration could offer some tailwinds, more long-term benefits were needed. Trump’s election victory was notably the biggest catalyst for the crypto market’s Q4 2024 rally, as investors anticipate favorable regulatory conditions.