Deribit’s Bitcoin and Ethereum Options Expiry on January 26: $5.8 Billion at Stake

January 26, 2024 — Deribit exchange is gearing up for the expiration of Bitcoin and Ethereum options contracts, totaling $5.8 billion. The contracts have a notional value of $3.75 billion for Bitcoin and $2.07 billion for Ethereum, with the maximum pain point at $41,000 and $2,300, respectively.

The put/call ratio stands at 0.52% for Bitcoin and 0.31% for Ethereum. A ratio below one suggests a prevalence of long positions, indicating bullish sentiment among traders.

Deribit’s Commercial Director, Luuk Strijers, confirmed the optimistic market sentiment, stating, “As the expiration date approaches, we see more signs of market recovery after the initial shocks related to the approval of Bitcoin spot ETFs and the outflow of funds from GBTC. We observe an increase in the deviation of the put/call ratios, indicating a change in sentiment among traders.”

Despite an initial increase in volatility following the approval of Bitcoin spot ETFs and the subsequent trading of this position, the volatility index (DVOL) has gradually decreased. As of the latest data, the DVOL index for Bitcoin is at 46.2%, and for Ethereum, it is at 47%. On January 23, 2024, Bitcoin dropped below $39,000 but has since rebounded to around $40,000, while Ethereum is trading at $2,207. Notably, both market prices are below their respective maximum pain points.