$2.2B Bitcoin & Ethereum Options Expire Amid Market Turmoil—What’s Next?

On Friday, January 10, over $2.2 billion in Bitcoin (BTC) and Ethereum (ETH) options expired, creating a pivotal moment for the crypto market. 

While some data points suggest a positive trend, recent price swings and broader economic pressures have tempered expectations.

Bitcoin Options Expire with Positive Signals

Approximately 19,000 Bitcoin options contracts, valued at $1.81 billion, expired on Friday. The put-call ratio for these contracts stood at 0.65, reflecting a larger number of call options compared to puts. This indicates a moderately optimistic outlook for Bitcoin.

Jan. 10 Options Data
19,000 BTC options expired with a Put Call Ratio of 0.65, a Maxpain point of $97,000 and a notional value of $1.81 billion.
141,000 ETH options expired with a Put Call Ratio of 0.48, Maxpain point of $3,450 and notional value of $460 million.
Due to the… pic.twitter.com/x0Uvd3EV1m

— Greeks.live (@GreeksLive) January 10, 2025

The max pain point for Bitcoin options was set at $97,000, a level where the most contracts would expire worthless. Bitcoin was trading at around $95,000 at press time, suggesting potential upward movement as market makers adjust positions. 

However, this optimism comes after Bitcoin dropped 11% earlier in the week, sliding from $103,000 to $91,000 amid challenging market conditions.

Ethereum Options Reflect Stronger Bullish Sentiment

In the Ethereum market, 141,000 options contracts, worth a total of $460 million, also reached expiration. The put-call ratio of 0.48 points to a higher proportion of call options, indicating a stronger bullish sentiment compared to Bitcoin.

Ethereum’s max pain point was $3,450, while its current price hovers around $3,300. Like Bitcoin, Ethereum experienced a sharp decline earlier in the week, falling 14% from $3,700 to $3,200. 

Despite this drop, the lower put-call ratio suggests optimism among market participants for a potential price recovery.

Macroeconomic Data Pressures Crypto Prices

The broader market faced headwinds this week, primarily driven by stronger-than-expected U.S. labor market data. Job numbers released on Friday pointed to the addition of 160,000 jobs in December, with the unemployment rate steady at 4.2%.

Stronger employment data dampened hopes for an early interest rate cut by the Federal Reserve. This contributed to an overall pullback in crypto prices, with both Bitcoin and Ethereum seeing notable declines over the week.

The U.S. Dollar Index remained above 109, and 10-year Treasury yields stayed near 4.7%, reflecting ongoing concerns about the Fed’s hawkish stance.

Key Focus: Bitcoin Price Action and ETF Inflows

In the coming week, traders are expected to closely monitor Bitcoin’s price movements and inflows into exchange-traded funds (ETFs). These factors could play a key role in determining market direction as investors reassess their positions.

Additionally, market participants are paying attention to the regulatory environment, with expectations that favorable developments could provide long-term support for cryptocurrencies.

The market remains in a cautious phase as traders navigate uncertainties stemming from macroeconomic conditions and recent volatility.

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