The cryptocurrency market entered a new period of uncertainty with the high volume option expiry on Friday, February 6. A total of approximately $2.5 billion worth of crypto options have expired, further complicating investors’ search for direction. While the market value has decreased significantly due to the sharp sales since the beginning of the week, the risk aversion tendency of both individual and institutional investors has strengthened. Experts point out that derivative positions, especially on the Bitcoin and Ethereum front, can be decisive on short-term price movements.
Bitcoin Options and Its Pressure on the Market
As of February 6, approximately 34 thousand Bitcoin option contracts have expired. Although these contracts, with a total nominal value of nearly 2.1 billion dollars, were of a more limited size compared to last week’s month-end maturity closing, they had a significant impact on market psychology. The fact that the put/call ratio was 0.59 revealed that there were predominantly buy positions in the market.
According to Coinglass data, the maximum loss level was around 82 thousand dollars. This level, which was well above the current spot prices, caused many options to become worthless at maturity. The open positions concentrated in Deribit were collected especially at the levels of 100 thousand and 70 thousand dollars, and an open interest of approximately 1.1 billion dollars was created at these two points.
Deribit officials stated that option transactions still indicate downward expectations. It was stated that the market was met with intense defensive positions between 80 thousand and 90 thousand dollars, and investors were cautious against the last wave of decline. Greeks Live, on the other hand, emphasized that the 60 thousand dollar band was the consolidation zone before the rise during the Trump era, and argued that possible sharp declines could create an opportunity for long-term purchases.
Ethereum and Cryptocurrency Market Outlook
In addition to Bitcoin options, approximately 217 thousand Ethereum contracts expired on the same day. The maximum loss level in these transactions, which had a nominal value of approximately $400 million, was calculated as $2,550. The fact that the put/call ratio was at 1.15 revealed that sell-side expectations were stronger on the Ethereum side. Total ETH option open positions hovered around $7.1 billion.
With these maturity closings, the total value of the crypto market decreased to 2.27 trillion dollars, falling to the lowest level in the last 16 months. The loss of approximately $686 billion in value since the beginning of the week clearly reflected the deterioration in market sentiment. Bitcoin’s fall below 60 thousand dollars in the Asian session showed that the decline was accelerating on a global scale.
Bitcoin has fallen by 50 percent compared to its peak, losing over $60,000 in value in the last four months. Ethereum, on the other hand, briefly fell below $ 1,800 and returned to bear market levels. Sharp losses in the altcoin market have strengthened concerns that a new long-term recession period may begin. Analysts agree that volatility may continue in the short term if highly leveraged positions continue to unwind.
