Bitcoin’s most recent successful push at the $100,000 price milestone, 22,000 BTC options were expiring today. The 0.95 put-call ratio of the expired contracts shows a balanced attitude between bullish and bearish holdings. There was a Max Pain Point of $96,000, at which most options become worthless. At the same time, these contracts were worth $2.19 billion in theory.
$2.19B Expiry Amid Bitcoin $100K Rally
Bitcoin options expiry follows a robust spot market rally, with BTC surpassing $100,000 again. Expiring Bitcoin Options Fuel: This action sparked the crypto market after a calm weekend. Bitcoin trades at $101,740, up 2.73% in 24 hours and 8% weekly. This turnaround comes four days after Bitcoin fell to $89,260, its lowest level since November 2024.
Market investors deemed the falling price a good entry, causing a quick rebound. With Bitcoin above $100K, bulls expect additional market swings, especially as pro-Bitcoin Donald Trump takes office next week. In the Ethereum options market, 182,000 options expired today, January 17.
Bitcoin Bulls Target $105K
Market resource Greeks commented on Bitcoin and Ethereum expiry data. Although Bitcoin is rising, Live reported that other market categories are poor. It noted that BTC dominates the market, making altcoins less prominent. Bitcoin Options Expiry: Ethereum is up 0.5% today, while Bitcoin is up 3%. At $3,378, Ethereum has gained 2.5% weekly compared to Bitcoin’s 8%.
Expiring Bitcoin options fuel other major altcoins like BNB, which show a similar pattern. Nonetheless, Greeks. Live reported that Bitcoin’s price gain has boosted short-term implied volatilities (IVs), indicating market expectations of future volatility. It noted that BTC’s long positions have strengthened, with traders eyeing $105,000 soon. Bitcoin rose to $102,037 after reclaiming $100K.
Bitcoin’s Dominance Over Altcoins
Bitcoin has taken precedence over altcoins, which have seen a slower price increase. Ethereum, the second-largest cryptocurrency by market cap, gained 0.5% daily and 2.5% weekly, while Bitcoin rose. Altcoins like Binance Coin (BNB) and Solana (SOL) have underperformed Bitcoin’s spectacular climb.
Bitcoin led this market rally, surprising observers who expected altcoins to participate more. Bitcoin remains the centre of attention due to its reputation as a store of wealth and institutional investor adoption. Bitcoin’s surge above $100K has increased retail. Institutional purchasers’ FOMO, solidifying its status as the dominant cryptocurrency.
Fueling the $100K Rally
Most open interest in Bitcoin options currently leans toward call options, indicating a bullish sentiment among traders. Many call options have strike prices between $90,000 and $100,000, reflecting optimism for a continued rally. If Bitcoin’s price trends upward as the expiry approaches, it could trigger a cascade of buying activity as traders look to capitalize on these contracts.
Institutional investors have increasingly dominated the Bitcoin options market, bringing substantial capital and strategic trading practices. With significant stakes in the current options contracts, institutional players may influence market dynamics to ensure favourable outcomes. This involvement often adds credibility and momentum to Bitcoin’s price trajectory.
The lead-up to options expiry typically sees heightened volatility as traders adjust their positions. This volatility, combined with favourable macroeconomic factors like decreasing inflation rates and growing adoption of cryptocurrencies, can amplify the upward momentum of Bitcoin’s price.
Summary
On January 17, 2025, the cryptocurrency market shifted significantly when $2.19 billion worth of Bitcoin options contracts expired. This event fuelled Bitcoin’s rise above $100,000. Bitcoin has again demonstrated its resiliency by recovering from prior declines and setting new price levels, thanks to the expiration that sparked purchasing pressure and market optimism. Bitcoin has a bright future due to its growing institutional adoption, favourable legislative developments, and the general market trend of acknowledging it as a valid financial instrument.
