Bitcoin, Ethereum options worth $2.6 billion expire with correction as a major theme this week

• Bitcoin and Ethereum options, with a notional value of $1.93 billion and $710 million respectively, expired on Friday. 
• Analysts at Greeks Live identify the theme of the market as that of correction even as traders in the US remain optimistic about expectations for 2025. 
• Bitcoin and Ethereum corrected slightly on the day, hovering around key support levels. 

Bitcoin and Ethereum options that expired on Friday have a combined notional value of over $2.6 billion. BTC and ETH prices are hovering around key support levels, recovering from the holiday dip in the last week of 2024. 

Friday marks the first weekly options delivery of 2025 and traders across the European and American markets are gradually returning from the holidays. The sentiment among crypto traders is that of “greed,” signaling optimism, according to the Crypto Fear & Greed Index at Alternative.me. 

Bitcoin, Ethereum derivatives traders optimistic

Data from derivatives tracker Coinglass shows that Bitcoin derivatives traders are bullish as the long/short ratio, a key metric, exceeds 1 across major exchanges. In the case of Ethereum, it exceeds 1 on Binance and OKX. 

Derivatives traders remain optimistic with the first options expiry of the year, valued at nearly $2.6 billion. 

Analysts at Greeks Live believe that the theme of the week is that of correction in crypto markets and note that there is significant market divergence. 

In less than three weeks from now, President-elect Donald Trump will be back in the Oval Office and his return has traders anticipating positive developments for blockchain and crypto. 

How Trump’s return to the White House could affect crypto

Kyla Curley, partner at StoneTurn LLP, told in an exclusive interview with FXStreet that she expects Trump’s return to the White House to have an overall positive impact on crypto. 
 

“Relative to the outgoing Securities and Exchange Commission Chair Gary Gensler, it’s anticipated that Trump’s pick Paul Atkins’ approach will be perceived as looser,” she said. 

Curley added: “But Atkins has publicly raised concerns over the SEC’s perceived unwillingness to work with the crypto community, and its historical and current approach of regulating through enforcement is driving the crypto market, including its regulation, abroad.”

Curley believes that Atkins will be receptive to working with crypto companies in finding a regulatory framework that will enable crypto companies to continue to thrive and add the proper safeguards to protect consumer and investor capital and confidence.