Today, January 3, marks the expiry of a significant $2.6 billion worth of Bitcoin (BTC) and Ethereum (ETH) options contracts, potentially leading to some notable market movements. Of this total, Bitcoin options account for $2.15 billion, while Ethereum options total $453 million. This expiry event has the potential to impact the short-term movements of both assets, especially considering the recent price changes in the market.
Bitcoin Options Expiry:
Bitcoin is set to see the expiration of 20,000 options contracts valued at $2.15 billion today. While this figure is lower compared to last week’s $88,537 contracts, it still holds the potential to trigger price movements. The current market sentiment for Bitcoin remains predominantly positive, with more long contracts (calls) than short contracts (puts) in play. The highest open interest for Bitcoin is at the $120,000 level, indicating that many traders are anticipating further upward movement for the cryptocurrency. A key price level to monitor is $97,000, as a breach of this level could signal the next direction for Bitcoin’s price trajectory.
$453 Million Ethereum Options Expiry:
In addition to Bitcoin, Ethereum is witnessing the expiry of 1,323,745 options contracts worth $453 million. The put-to-call ratio of 0.33 suggests that a larger proportion of traders are anticipating price increases for Ethereum. The maximum pain price for Ethereum is identified at $3,400, indicating a potential movement towards this level. While Ethereum has been performing well recently, breaking through the $3,600 resistance level is crucial for sustaining its upward momentum.
What’s Next for Bitcoin and Ethereum?
With the significant options expiry event unfolding, both Bitcoin and Ethereum could experience notable price fluctuations, considering the recent market volatility. Bitcoin is currently hovering near the $97,000 level and may see further upside if it successfully surpasses this resistance barrier. On the other hand, Ethereum is approaching the $3,430 mark and continues to show positive momentum. However, breaking through key resistance levels will be essential for both cryptocurrencies to maintain their upward trajectory.
In conclusion, the expiry of the $2.6 billion worth of Bitcoin and Ethereum options contracts presents a crucial juncture for the market, with potential price movements expected in the short term. Traders and investors alike will closely monitor the performance of both assets as they navigate through key resistance levels in the days ahead.