As part of a major development for the world of cryptocurrencies, 31,000 Bitcoin options (BTC) options, totaling around $ 3.19 billion, expires today. This key event has drawn the attention of market players, because it could influence the trajectory of Bitcoin prices, in particular in a context of growing speculation on its potential role as a reserve ratio for the American government. The moment of expiration is particularly important because it coincides with the signing by former president Donald Trump of a decree creating a committee responsible for exploring the feasibility of a Bitcoin national reserve.
What do these expired bitcoin options mean?
According to Greeks.live data, a professional option of options trading, Bitcoin options arriving at an expiration have a Put-Call ratio of 0.48, with a maximum painful point at $ 100,000. The maximum “painful point” refers to the price at which the largest number of options of options would expire without value, causing the most losses for optional holders. While $ 100,000 marks a critical price level for Bitcoin options, the expiration of these contracts could trigger significant volatility on the market.
Given the substantial notional value of $ 3.19 billion linked to these expiration options, the event should have a significant impact on the price of bitcoin. Bitcoin recently managed to maintain itself above $ 100,000 level, and with growing speculation on the role of bitcoin as a potential reserve actor for the American government, this expiration adds oil to fire .
Trump’s decree: a change for Bitcoin?
The time for exposing options is all the more crucial since it comes shortly after President Trump signed a decree creating a committee responsible for assessing the advantages of a Bitcoin national reserve. This decision has created a market training effect, investors closely monitoring the potential implications of this change in policy. If the US government created a Bitcoin national reserve, the role of bitcoin as a reserve rat could acquire significant legitimacy, potentially stimulating demand for digital currency.
Trump’s decision to approve the committee training is considered a step towards the formalization of Bitcoin and other digital assets in the financial system. If the Committee determines that a Bitcoin reserve would benefit the American economy, this could arouse substantial institutional and government interest for Bitcoin, thus reinforcing its place in the global financial markets. This potential support from the government could, in turn, lead to an increased demand from Bitcoin, making its price further increase in the coming months.
The volume of the Bitcoin market increases in the middle of policy changes
Despite recent Bitcoin price fluctuations, Bitcoin derivative trading is experiencing an important activity. According to Correglass data, the volume of Bitcoin options jumped 58.50 %, reaching a new summit of $ 4.76 billion. However, the interest open for Bitcoin options, which measures the total value of current contracts, decreased by 4.92 % to 37.09 billion dollars. This suggests that some traders close their positions while waiting for more clarity on market orientation.
Even with this decrease in open positions, the overall volume of derivatives transactions increased by 132.35 %, reaching 187.02 billion dollars. This indicates that, while some traders make profits, others are betting on the continuous growth of Bitcoin, in particular in the light of Trump’s decree and broader market trends.
The Ethereum options market experiences increased speculation
It is not only Bitcoin who is experiencing increased activity on the market: Ethereum (ETH) options also have an increase in the volume of transactions. Greeks.live reports that 174,000 Ethereum options have expired today, with a Put-Call ratio of 0.47 and a maximum sensitive point at $ 3,300. The total notional value of these Ethereum contracts is $ 580 million and the volume of options increased by 38.06 %, reaching $ 1.21 billion.
Despite a 5.92 % drop in open interest in Ethereum options, which now amounts to $ 8.10 billion, the wider market for Ethereum derivatives remains active. The total volume of Ethereum exchanges increased by 89.40 % to 54.30 billion dollars, which shows that speculation around cryptocurrency remains strong.
Macro events and their impact on the cryptography markets
Macroeconomic events also influence cryptocurrency markets. Greeks.live stresses that central banks, such as the Bank of Japan, adjust their interest rates, which could have an impact on the confidence of investors. At the same time, the federal reserve should maintain its current position in terms of interest rate, without any immediate expected reduction. These measures taken by traditional financial institutions could play a role in the evolution of cryptography market trends, as investors adjust their strategies accordingly.
In addition, market players closely monitor potential changes in American policy, in particular with the approach of the new administration in digital assets. Traders are positioned in anticipation of how new policy regulations and changes could affect the value of cryptocurrencies like Bitcoin and Ethereum.
Institutional investment and ETF Bitcoin entries
The institutional interest in Bitcoin continues to grow, the ETF Bitcoin in cash in the United States recording six consecutive days of entries from January 15 to 24. According to Sosovalue data, the Bitcoin ETFs recorded net entries of $ 3.7 billion during this period, including more than a billion dollars in January. 17 and more than $ 800 million on January 21. This continuous institutional influx testifies to increasing confidence in Bitcoin as a main financial active and suggests that the role of bitcoin as a reserve ratio is gaining ground. momentum.
Conclusion
The expiration of 31,000 Bitcoin options worth $ 3.2 billion, associated with the recent decree of President Trump on cryptocurrency, marks a pivotal moment on the Bitcoin market. While Bitcoin is maintained above the crucial level of $ 100,000, the expiration of these options could lead to increased volatility, while growing institutional interest and policy changes under the new administration prepare the ground for the Potential ascent of bitcoin as a reserve ratio.
While speculation continues to increase in the Bitcoin and Ethereum markets, traders closely monitor these developments. With the increase in institutional flows and significant political changes on the horizon, the future of bitcoin seems ready for growth, paving the way for a potentially transformative year in the space of cryptocurrencies.
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