Today, approximately $3 billion in Bitcoin (BTC) and Ethereum (ETH) options are expiring, generating notable activity in the cryptocurrency market. This event coincides with Donald Trump’s upcoming inauguration, adding to the excitement as Bitcoin exceeds the $100,000 milestone.
Specifically, over 21,600 Bitcoin options contracts, valued at around $2.2 billion, are set to expire. The put-to-call ratio for Bitcoin stands at 0.94, indicating a positive outlook among traders who anticipate price increases. The maximum pain point, where the most contracts expire worthless, is at $96,000. In the case of Ethereum, 182,454 options contracts worth $612.2 million are expiring, with a put-to-call ratio of 0.36, suggesting even stronger bullish sentiment. The maximum pain price for Ethereum is $3,250.
Options expirations typically lead to price fluctuations, and today is no different. Traders are monitoring market movements closely, as short-term implied volatility (IV) rises. Analysts recommend considering short-term options purchases as a strategic approach.
Bitcoin’s surge to $100,000 is largely attributed to optimism surrounding Trump’s presidency. Analysts from Greeks.live highlight that Trump’s pro-crypto stance may result in favorable policies for the sector. Additionally, the anticipation of stable interest rates contributes to the positive market sentiment.
As Bitcoin trades at $101,187, reflecting a 1.62% gain since the market opened, global trading dynamics are also at play. Analysts noted that while Asia and Europe sold Bitcoin earlier, American traders capitalized on the lower prices, reversing the trend and boosting the market.
Overall, as the Trump administration’s crypto policies and ETF inflows develop, analysts expect ongoing market activity influenced by political factors.
