$3B in Bitcoin, Ethereum options expire as Trump era begins

$3 billion in Bitcoin and Ethereum options expire today, fueling market volatility as BTC surpasses $100K ahead of Trump's pro-crypto inauguration.

Around $3 billion worth of Bitcoin (BTC) and Ethereum (ETH) options are expiring today, creating significant activity in the crypto market. These expirations come just ahead of Donald Trump’s inauguration, adding to the excitement as Bitcoin surpasses the $100,000 mark.

Over 21,600 Bitcoin options contracts, worth approximately $2.2 billion, are expiring. The put-to-call ratio of 0.94 for Bitcoin signals optimism, as more traders expect prices to rise. The maximum pain point, where the most contracts expire worthless, is $96,000. Similarly, 182,454 Ethereum options contracts, valued at $612.2 million, are set to expire. Ethereum’s put-to-call ratio of 0.36 reflects even stronger bullish sentiment, with a maximum pain price at $3,250.

Options expirations often lead to price volatility, and today is no exception. Traders are closely watching market movements as short-term implied volatility (IV) rises, and analysts suggest that purchasing short-term options may be a strategic move.

Bitcoin’s rally to $100,000 is attributed to market optimism surrounding Trump’s presidency. Analysts at Greeks.live note that Trump’s pro-crypto stance could lead to favorable policies for the cryptocurrency sector. Additionally, expectations of no interest rate cuts further contribute to the positive sentiment.

“Bitcoin has climbed back above $100,000, erasing the subdued market sentiment from the weekend. With Trump set to take office next week, it’s worth monitoring whether his administration will introduce crypto-friendly policies. The market is also keeping an eye on the upcoming rate meeting, which is expected to maintain the current policy,” shared Greeks.live on X (formerly Twitter).

Global trading behavior is also influencing Bitcoin prices. Analysts observed that Asia and Europe sold Bitcoin earlier in the day, causing prices to drop, only for American traders to buy at the lows, turning the market bullish. This highlights the global interplay in crypto trading.

“Asia and EU sold BTC today, and Americans bought it all back at the lows, turning a red day into a green one for BTC,” Greeks.live commented.

At the time of writing, Bitcoin is trading at $101,187, representing a 1.62% gain since the market opened today. As the Trump administration’s crypto-related policies and the impact of ETF inflows unfold, analysts expect continued market activity driven by political developments.