Bitcoin (BTC) is gearing up for a big moment as $5.82 billion worth of options on the cryptocurrency are set to expire tomorrow. As of European trading hours on Thursday, Bitcoin was holding positions above $40,000 with $3.75 billion worth of BTC options and $2.07 billion worth of ETH options.
How might this development affect you? Let’s explore.
Awaiting D-Day: Bitcoin is approaching options expiration.
With $3.75 billion in BTC options and $2.07 billion in ETH options set to expire on Friday, Deribit, the world’s largest cryptocurrency options exchange, is in the spotlight. Surprisingly, this accounts for over 85% of global activity.
Leading up to this important moment, the initial impact of the introduction of ETFs and GBTC easing resulted in a notable rebound in the market. Despite the challenges, traders are strategically shifting January expiring contracts to February, indicating a calculated response to market conditions.
Bitcoin price is currently at a resilient $39,870, demonstrating stability ahead of the release of US fourth quarter gross domestic product (GDP) data and the expiration of Deribit’s significant $5.8 billion cryptocurrency options.
Also read: If this happens, Bitcoin price risks falling to $10,000.
key economic indicators
In contrast, the dollar index, which measures the dollar’s value against major fiat currencies, remains stagnant at around 103.70. Meanwhile, traders are keenly monitoring the highly anticipated U.S. fourth quarter GDP data, with seasonally adjusted annual growth forecast at 2%, down from 4.9% in the third quarter.
Market sentiment remains fluid as traders re-evaluate the likelihood of an early interest rate cut by the Federal Reserve amid the ongoing inflation crisis. In particular, federal funds futures currently indicate a 50% probability of a Fed rate cut in March, which is a notable change from the 80% probability observed just a month ago.
Option Problem
To highlight a critical level, the maximum trouble for Bitcoin’s January expiration options is $41,000, while for Ether it is $2,300. This represents the point at which an option buyer faces the highest potential loss upon expiration, which is an important factor in a trader’s strategic decision-making.
As the cryptocurrency market approaches the US GDP release and subsequent options expiration, the potential impact on both Bitcoin and Ether prices is becoming increasingly clear, with traders closely monitoring it.
Read more: Is Ethereum in a downward trend? Short-Term Bearish Grip Options Market
We are full of anticipation. you are?