According to data from Deribit, 21,664 Bitcoin contracts worth $2.2 billion will expire, of which the “maximum pain point” will be at $96,000. This figure represents the price where most contracts lose value. Ethereum will see 182,454 contracts, valued at $612.2 million, expire with a maximum pain level of $3,250.
The put-to-call ratio, a key market indicator, is below 1 for both Bitcoin and Ethereum. This shows traders expect prices to rise, boosting confidence in the market.
Bitcoin recently broke past $100,000, reflecting this optimism. Analysts link the bullish trend to Donald Trump’s impending inauguration. They believe his pro-crypto stance could influence policies favorably.
Market watchers also highlight regional trading behaviors impacting prices. Bitcoin took a slight dip owing to a surge of sell-side flows from Asia to Europe, only for American traders to reverse all those losses via strongly green candles.
Set against a backdrop of increasing implied volatility, analysts said, investors might want to focus on shorter-term options amid possible changes in policy and ETF-related flows.
At the time of writing, Bitcoin is changing hands at $101,187, up 1.62% since the session began. The market remains pretty volatile, with the options expiration likely to shape the short-term outlook.
