Leading cryptocurrencies Bitcoin (BTC) and Ethereum (ETH) are preparing for the expiration of significant option contracts following the listing of spot Bitcoin ETFs, which has impacted BTC’s price and trading volume. The Crypto Fear and Greed Index indicates a shift from extreme greed to a neutral sentiment.
On January 26th, options contracts worth $3.7 billion for 93,588 BTC will expire, with a put-call ratio of 0.52 and a “max pain” price point at $41,000. Current BTC prices hover around $40,000, below the max pain threshold, suggesting investors anticipate a recovery.
Bitcoin futures have seen a slight increase in open interest, with a notable rise on Binance. The total open interest in Bitcoin options stands at $15 billion.
Similarly, ETH options contracts valued at $2 billion will expire on the same day, with a put-call ratio of 0.31 and a max pain price of $2,300, which is above the current price, indicating expectations for an upward movement.
The crypto market is on high alert for upcoming macroeconomic data that will influence the Fed’s interest rate decision. Investors are closely monitoring the U.S. GDP data for Q4 2023 and core inflation rates, as well as the U.S. 10-year Treasury yields and the U.S. Dollar Index.