Bitcoin option contracts worth $14.38 billion will expire today, reflecting strong market volatility and expectations of a Santa Claus rally.
With just seven days left for 2024 to end, the crypto market is bracing for the largest Bitcoin options expiry on record. As per derivatives market data, a record $18 billion in Bitcoin and Ethereum options will expire today amid broader market volatility and expectations of a Santa Claus rally.
Data from Deribit shows that a total of 88,537 Bitcoin options contracts will expire today, literally four times the volume seen last week. The total value of expiring Bitcoin options has hit a record-breaking $14.38 billion.
Photo: Deribit
The expiring Bitcoin options have a maximum pain price of $85,000 and a put-to-call (P/C) ratio of 0.69. Typically, a low P/C ratio below 1 suggests positive sentiment, with more call options (bets on price rises) being purchased, indicating bullish market expectations. However, historical trends show that the put-call ratio rises steadily during the final quarter of the year, and traders might opt for hedging strategies as well. David Lawant, Head of Research at FalconX, commented:
“Demand for downside protection has been rising for a few weeks now, perhaps partially fueled by players looking to protect their 2024 calendar year performance metrics. The put/call ratio on December 27 options open interest doubled from 0.35 in October to over 0.70 currently.”
$3.7 Billion in Ethereum Options Expiring Today
A total of $3.7 billion in Ethereum options will expire today with a max pain point of $3,000 and a put-call ratio of 0.41. From 0.97 put-call ratio in October, this ratio has decreased considerably in the last two months following the uptick in ETH price after Donald Trump’s victory in November.
Photo: Deribit
Over the last week, both Bitcoin BTC $111 012 24h volatility: 0.8% Market cap: $2.21 T Vol. 24h: $21.12 B and Ethereum ETH $4 278 24h volatility: 0.1% Market cap: $516.62 B Vol. 24h: $14.15 B have gone through strong turbulence. From its all-time high, the Bitcoin price has crashed more than 11% and is currently finding strong support at $95,000. Market analysts predict that if BTC loses this support, it can further crash all the way to $70,000 by Donald Trump’s inauguration ceremony next month on January 20.
As Donald Trump prepares to take office in January, he is set to become the most crypto-friendly president in US history. Alongside him, Elon Musk’s continued advocacy for digital assets is expected to inject further momentum into the market.
On the other hand, ETH price is also facing downward selling pressure correcting more than 17% after facing rejection at $4,000. Analysts expect a dip coming under $3,000 before Ethereum resumes a rally again.
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