The cryptocurrency sector is poised for a dynamic shift as Bitcoin option contracts worth nearly $1 billion approach their February 2 expiry date. This crucial moment arrives as the market gradually recovers from a post-ETF introduction decline. Analysts and investors are evaluating whether this impending expiry could potentially elevate market prices over the forthcoming weekend.
Bitcoin’s Upcoming Options Expiry
In an imminent event, the crypto sphere is set to experience the expiry of about 22,000 Bitcoin options, an occasion that though less significant than the previous week’s extensive expiry, still marks a substantial $960 million in market activity. Data from Greeks Live reveals that these contracts, with a put/call ratio of 0.66, suggest a leaning towards long positions. The critical price point for these options, where losses peak, is identified at $42,000. Nevertheless, there persists a hefty open interest at the $50,000 strike price, where over 14,000 call contracts are placed, valued at $610 million, and another notable interest at the $45,000 mark.
Greeks Live has noted a relative stagnation in the crypto market this week with a slight decline in volatility. They point out that the introduction of Bitcoin spot ETF products is beginning to channel more capital into the cryptocurrency domain as the sales of other products, like grayscale, decrease. Speculation now turns towards Bitcoin’s next halving event, which has been sustaining its ascending trend this year.
Ethereum’s Contract Dynamics
Simultaneously, Ethereum is also approaching a significant milestone with 230,000 of its options set to expire on February 2. These have a total nominal value of $530 million and exhibit a put/call ratio of 0.33, signifying a strong bias towards long contract sellers. Ethereum’s options are poised to face their maximum pain at the current spot market price of $2,300.
With the entire market value hitting $1.73 trillion, the crypto markets have seen a 2.3% increase in the last 24 hours. The price of Bitcoin recorded a 2.6% rise during the Asian trading hours, reclaiming a price level of $43,000, while Ethereum experienced a 2% lift, reaching back to the $2,300 level. Despite these movements, spot market prices have mostly exhibited a sideways trend over the previous two months.