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
“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.”
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.
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.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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