Nearly $3 billion in Bitcoin and Ethereum options expire today

Today, approximately $3 billion in Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) options are set to expire, creating significant anticipation in the cryptocurrency market.

This expiration coincides with the upcoming inauguration of President-elect Donald Trump, during which Bitcoin has surged to reclaim the $100,000 mark.

According to data from Deribit, 21,664 Bitcoin contracts valued at around $2.2 billion are expiring today, with a put-to-call ratio of 0.94.

The maximum pain point for Bitcoin is identified at $96,000, a price level at which many contracts will expire worthless.

In addition, 182,454 Ethereum contracts worth approximately $612.2 million are also expiring, with a put-to-call ratio of 0.36 and a maximum pain point of $3,250.

The expiration of options often leads to notable price volatility, making it crucial for traders and investors to monitor market developments closely.

The current put-to-call ratios indicate optimism among traders, suggesting a higher likelihood of price increases for both cryptocurrencies.

Analysts attribute Bitcoin's recent rally to Trump's pro-crypto stance and the expectation of favorable policy changes once he takes office next week.

“Bitcoin rallied again above $100,000... it is worth keeping an eye on whether or not he will enact policies directly favorable to cryptocurrencies this month,” analysts at Greeks.live noted.

Despite the general optimism, short-term option implied volatility has increased, prompting analysts to recommend purchasing short-term options as they anticipate market shifts due to potential policy changes. 

At the time of reporting, the Bitcoin price was $101,417 and the Ethereum price was $3,370.31.