Nearly $3 billion worth of Bitcoin and Ethereum options expire as the market tests recent upward momentum.

Nearly $3 billion USD in Bitcoin and Ethereum options contracts will expire today (1/16), turning the derivatives market into the focal point just as the cryptocurrency market is testing the strength of recent upward momentum.

Although Bitcoin has surpassed a key technical resistance level, indicators related to options positions and market volatility show that traders remain cautious, not rushing to confirm a true breakout rally.

Options Expiration: A Challenge for Bitcoin's Uptrend

According to data from Deribit, the total notional value of options contracts expiring today amounts to approximately $2.84 billion USD. Among them, Bitcoin dominates with $2.4 billion USD, while Ethereum contributes about $437 million USD.

Bitcoin options nearing expiration | Source: DeribitThis discrepancy clearly reflects the market's focus and the current risk concentration on Bitcoin.

Currently, Bitcoin is trading around $95,310 USD, significantly above the “max pain” level of $92,000 USD. In options markets, “max pain” is the price at which the most contracts will expire worthless, often acting as a price magnet at expiration.

The fact that Bitcoin's price exceeds this level increases the likelihood of sharp volatility as positions are closed, transitioned, or hedged.

Despite breaking out, Bitcoin's options positions remain defensive. The number of open call options is 11,170, while open put options are 14,050, raising the put-to-call ratio to 1.26.

This ratio indicates that demand for downside protection still outweighs bullish leverage, even after BTC escaped a nearly two-month-long accumulation zone.

Bitcoin (BTC) price movement | Source: TradingViewIf Bitcoin's daily candle remains above $94,304 USD, it could serve as a springboard for further gains toward the $100,000 USD target. Conversely, if this support level is broken, the price could revert to the previous months' accumulation zone.

Ethereum Options: Caution as ETH Remains Range-Bound

Contrary to Bitcoin, Ethereum continues to show signs of accumulation rather than acceleration. ETH is currently trading around $3,295 USD, only slightly above the maximum pain level of $3,200 USD.

ETH options market is quite balanced, with 65,527 call options and 67,207 put options, resulting in a nearly neutral put-to-call ratio of 1.03.

Ethereum options nearing expiration | Source: DeribitThese figures reflect a market that is hedging risks but remains hesitant, consistent with ETH's inability to clearly break above the $3,400 USD resistance zone.

Ethereum (ETH) price movement | Source: TradingViewMeanwhile, derivatives flows highlight Bitcoin's leading position in the current rally. The market report from Greeks.live on 1/14 pointed out a clear difference in block trading activity between Bitcoin and Ethereum.

“Bitcoin successfully broke the $95,000 USD resistance, exiting a nearly two-month accumulation zone,” experts noted. “Ethereum has a larger percentage gain but shows weaker price action than BTC, still oscillating within the $3,400 USD accumulation zone.”

This difference becomes even more apparent in large-scale transactions. According to Greeks.live, Bitcoin block trades reached $1.7 billion USD, accounting for over 40% of the total daily trading volume. Meanwhile, Ethereum block trades amounted to only $130 million USD, about 20% of ETH's trading volume.

“The market is clearly focused on Bitcoin's bullish momentum,” the report emphasized.

However, the overall picture of the derivatives market remains unconvincing. Greeks.live pointed out that futures volume has not increased significantly alongside the price rally, and the implied volatility of major maturities has not recovered strongly.

“The derivatives market has not yet entered a sustainable bullish phase,” analysts commented, also noting that the current setup “resembles a temporary reaction to the sudden surge, with long-term prospects still not shifting into a bullish market.”

As large options contracts expire today, the spot price may gravitate toward maximum pain levels, and investors should prepare for potential sharp volatility. However, markets often settle down afterward as traders adapt to the new environment.