Bitcoin – Key metrics show this week’s $4B Bitcoin options expiry favors bulls
A record $4 billion worth of Bitcoin options expire on January 29 and multiple indicators suggest bulls have the upper hand.
Over the past two weeks, Bitcoin price appears to have lost momentum and some analysts are suggesting that bears will be in control for the foreseeable future. Taking a look at derivatives market data provides a clearer picture of what is happening on the institutional side and how the moves of larger players may impact the spot markets. After peaking at $10.6 billion on Jan. 14, the open interest on Bitcoin (BTC) scaled back to $8.4 billion. The Jan. 29 monthly expiry continues to stand apart, totaling 47% of the options in play.Although a $4 billion expiry could be significant, one must consider that these options are split among calls (neutral-to-bullish) and the more bearish put options. Furthermore, having an opportunity to buy BTC for $52,000 on Jan. 29 might have made sense a couple of weeks ago, but not so much right now.BTC options aggregate open interest. Source: Bybt.comAs the data above depicts, Deribit exchange remains the absolute leader with an 83% market share. Nevertheless, to understand how eventful this expiry could be, one must adjust data and compare both calls and put options near the current $32,000 BTC level.It’s too early to panicMost exchanges offer monthly expiries and some also hold weekly options for …
