A total of approximately 16,500 Bitcoin options contracts, valued at around $1.6 billion, are set to expire this Friday, February 21. This week's expiration event is comparatively smaller than the previous one and stands as one of the smallest this year, suggesting minimal impact on the spot markets, which have hovered within a narrow range this week.
The current batch of Bitcoin options exhibits a put/call ratio of 0.75, indicating a slight dominance of call (long) contracts over puts (shorts) set to expire. According to Deribit, the open interest (OI)—the measure of the value or number of BTC options contracts yet to expire—remains highest at the $120,000 strike price, totalling $1.8 billion. Additionally, $1.2 billion is open at the $110,000 strike, reflecting traders' ongoing speculation on Bitcoin's long-term price increase.
Earlier this week, crypto derivatives specialist Greeks Live described market sentiment as "cautiously bearish," with traders facing challenges due to low volatility. They added, "Options for next week are priced at 40% volatility, with front-month contracts below, suggesting potential market weakness." Deribit confirmed this in its weekly Insights report, noting a decline in strong directional sentiment due to recent stagnant spot market trends.
Furthermore, funding rates for Bitcoin and Ethereum remain close to zero, following a strong negative spike for Ether earlier this month, with Ethereum's volatility maintaining a higher premium than Bitcoin.
Concurrently, around 153,000 Ethereum contracts, valued at $420 million, are set to expire today, with a notable put/call ratio of 0.48. As a result, Friday's combined cryptocurrency options expiry reaches a notional value of approximately $2 billion.
Towards the week's close, markets have observed slight gains, pushing total capitalization to $3.35 trillion. Despite this, the market continues to linger at the lower end of a three-month sideways trading pattern. Bitcoin reached an intraday high of $98,750 on Friday morning in Asia but encountered resistance and retracted slightly.
Ethereum displayed volatility, peaking at $2,767 before retreating to $2,744, having traded within a sideways range since dipping below the $3,000 mark in early February. Altcoins generally marked gains this Friday morning, led by notable increases in Solana, Sui, Avalanche, and Litecoin, driven partly by growing anticipation around ETFs.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.