BTC and ETH options are expiring in large volumes, and the market's implied volatility has hit a new high for the year

The cryptocurrency market experienced a significant options expiration event at the end of January. According to data from BlockBeats, a large-scale options contract expiration occurred simultaneously, reflecting market participants’ deep concern over recent price fluctuations. Currently, BTC is priced at $69,000 (up 4.19% in 24 hours), and ETH is at $2,050 (up 5.52% in 24 hours), as the market continues to evolve amid intense volatility.

Options Expiration Data Hits New Highs

The options expiration on January 30th was remarkable. A total of 91,000 BTC options expired on that day, with a notional value of $760 million, and a put-to-call ratio of 0.48. The maximum pain point was at $90,000. Meanwhile, 435,000 ETH options also expired at the same time, with a total notional value of $119 million, and a put-to-call ratio of 0.68. The maximum pain point was at $3,000.

According to analyst Adam from Greeks.live, this expiration marks the first monthly expiration after the annual settlement, with expired options accounting for 25% of all expired positions, involving nearly $900 million in trading volume. Notably, call options dominated this expiration, indicating a bullish outlook among market participants.

Implied Volatility Surge Signals Market Sentiment

Implied volatility data in the options market provides key indicators of market sentiment. The implied volatility for BTC’s main expiration month has risen to approximately 45%, while ETH’s implied volatility has reached 60%, both hitting their highest levels this year. This spike in volatility directly reflects traders’ increased expectations for price swings.

Since January, both BTC and ETH prices have entered a significant downtrend, reigniting market volatility concerns. This decline continues the aftermath of the Q4 crisis last year. Market participants are seeking support levels around $80,000 for BTC and $2,500 for ETH as critical defense lines.

Trader Defensive Strategies and Market Liquidity

The current options market shows a highly active trading environment. Trading volume and open interest are both high, driven mainly by traders adjusting their positions. Market makers and active traders are holding substantial cash reserves, indicating strong trading intent.

From the structure of trading demand, the most prominent is the demand for downside protection through put options, suggesting participants are defensively positioning against further price declines. The entire market is rebalancing risk exposure through options in a high-volatility environment, and this dynamic activity further elevates implied volatility, creating a self-reinforcing cycle.