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Bitcoin Options Worth $1.1B Expiring, Can BTC Reach $45K Again?

As $1.1 billion worth of Bitcoin options contracts approach expiration, the cryptocurrency market anticipates potential impacts in pros and cons.

Key Takeaways

  • $1.1 billion in Bitcoin options contracts set to expire, featuring a put/call ratio of 0.70 favoring longs.
  • Approximately 217,000 Ethereum options contracts, valued at $491 million, are also set to expire.
  • Notable interest in Bitcoin strike prices of $40,000, $45,000, and $50,000, with indications from the options market.
  • Despite options expirations, the overall cryptocurrency market capitalization has risen to $1.74 trillion, reaching levels not seen since May 2022.

Bitcoin Options Expiry and Market Dynamics

As the week concludes, the cryptocurrency market is bracing for the expiration of $1.1 billion worth of Bitcoin options contracts, set to occur on December 22.

The put/call ratio stands at 0.70, suggesting that more longs (calls) are expiring than shorts (puts). Noteworthy strike prices include $40,000 and $45,000, with Deribit reporting about 22,400 calls awaiting at $50,000.

Options Market Signals and Ethereum Expiry

Greeks Live, on December 21, observed mixed signals in the options market as Bitcoin hovered around $44,000. Notably, significant put buying dominated both BTC and ETH block trades, with sizable amounts totaling $100 million. Cautionary notes were sounded, advising traders to be vigilant regarding potential downside risks.

In addition to Bitcoin, around 217,000 Ethereum options contracts, valued at approximately $491 million, are set to expire. The put/call ratio for Ethereum options is reported at 0.60, with strike prices of $2,400 and $2,500 attracting the most interest among derivatives traders.

Market Outlook and Altcoin Performance

Despite the expiring options, today’s market dynamics appear robust, with a 2.5% gain pushing the total cryptocurrency market capitalization to $1.74 trillion. Bitcoin itself has experienced a 1.4% gain, reaching $44,135, and showing a 3.6% increase since the previous week.

Altcoins are particularly noteworthy in today’s market, as Solana, Cardano, Avalanche, Polkadot, and Chainlink lead with substantial gains. Solana even briefly surpassed BNB, securing the fourth position on the market cap table before settling back into the fifth position.

To Conclude

The expiration of $1.1 billion worth of Bitcoin options contracts, coupled with significant Ethereum options expiries, has generated anticipation in the cryptocurrency market.

Despite this, the overall market remains resilient, with altcoins leading the way in notable gains. The total market capitalization reaching $1.74 trillion signals continued strength, even as Bitcoin approaches critical strike prices.