Bitcoin Options Data at the End of 2023: What Does It Indicate? Current Situation!

• Bitcoin investors witnessed significant developments marked by an impressive 160% increase in the value of the world’s largest cryptocurrency in 2023.
• As of December 29, the cryptocurrency options market is gearing up for a significant expiration, according to data from GreeksLive.
• The year 2023 has shown the increasing maturity of the crypto options and derivatives market, with a significant influx of institutional investors.

The end of 2023 draws near, and attention is on the options data: Current data and updates on Bitcoin!

End-of-Year Bitcoin Options Data for 2023

Bitcoin investors witnessed significant developments marked by an impressive 160% increase in the value of the world’s largest cryptocurrency in 2023. As we enter 2024, Bitcoin continues to be one of the best options for investors, and the community is eagerly anticipating the imminent launch of the first Bitcoin ETF in the market.

Today marks the end-of-year expiration date for the last Bitcoin options in 2023 before we step into 2024. As of December 29, the cryptocurrency options market is gearing up for a significant expiration, with approximately 178,000 Bitcoin (BTC) options expected to expire, resulting in a Put-Call Ratio of 0.67. The maximum pain point is set at $33,000, reaching a substantial nominal value of $7.59 billion.

Today, the peak of the significant annual expiration day is highlighted, witnessing a total of $11 billion in options expiring. This figure represents a significant increase from the total position of $9.8 billion observed during the corresponding annual expiration day last year. Additionally, the current volume is more than double the annual expiration volume observed in the same period last year.

The cryptocurrency market typically experiences low volatility towards the end of each year, but the expected arrival of Exchange-Traded Funds (ETFs) in January contributes to sustained interest. Despite the usual trend of low volatility, the current General Implied Volatility (IV) level remains relatively balanced due to anticipated ETF developments next month.

The year 2023 demonstrated the increasing maturity of the cryptocurrency options and derivatives market, accompanied by a notable influx of institutional investors. This influx brings a broader range of strategies and products, signaling an evolving market that accommodates various participants and trading approaches.

Recent BTC Developments

Major market players are preparing for a SEC-approved Bitcoin ETF. According to an unofficial timeline, this is expected to happen around January 10, 2024. On December 28, 2023, 21Shares and Ark Invest took a significant step in this process by filing the 5th amendment to the S-1 form. This move comes during a period of high expectations for the potential approval of a spot Bitcoin ETF in financial markets.

The latest amendment is reported to focus on changes in terms regulating authorized participants involved in the process. This updated application comes just one day before the current December 29 deadline. Currently, the Bitcoin price is hovering around $42,800. Some market analysts suggest that we may see a drop to $40,000 in the coming days, but they note that such a drop could present a strong buying opportunity.