By Omkar Godbole (All times ET unless indicated otherwise) The market story is clear: Bitcoin (BTC) and the other major coins are down alongside Nasdaq 100 futures as President Donald Trump's tariff threat against the European nations opposing his takeover of Greenland ramps up geopolitical tensions. But, under the hood, there's another dynamic, and it involved the invisible hands that make the trading experience seamless. Those hands belong to market makers, the entities that create buy and sell orders ...

Core Viewpoint - Deribit has launched USDC-settled options products for AVAX and TRX, expanding its offerings beyond perpetual contracts [1] Group 1: Product Launch - Deribit now offers USDC-settled options for AVAX and TRX, which were previously available only as perpetual contracts [1] - The options can be used to hedge against downside risks in the spot market or to sell calls while holding the underlying assets to collect premiums [1] Group 2: Contract Specifications - Each AVAX options contract corresponds to 100 AVAX, while each TRX options contract corresponds to 10,000 TRX [1] - Currently, AVAX and TRX tokens cannot be deposited, and they cannot be used as offset currencies [1]

Deribit, a cryptocurrency derivatives exchange, and crypto options trading platform SignalPlus have concluded the 2025 Deribit x SignalPlus Trading Competition (Space Edition), according to a Jan. 5 announcement. The competition generated over $23 billion in cumulative notional trading volume in 2025, highlighting strong participation from both institutional and retail traders in the crypto derivatives market. Data shared by Deribit and SignalPlus shows steady growth over time, with the competition produc ...

Core Insights - Deribit and SignalPlus reported that the cumulative nominal trading volume of the Deribit x SignalPlus trading competition series exceeded $23 billion in 2025, representing a threefold increase compared to approximately $8 billion in 2024 [1] - The event attracted 586 active traders, with a peak daily active user (DAU) count of 391, and new competition deposits amounted to approximately $79 million [1] - Despite increased market volatility in the second half of the year, options participation continued to rise, and both companies plan to continue their events and collaborations in 2026 [1]

Core Viewpoint - Bitcoin traders are showing increased interest in $100,000 strike call options for January expiry, indicating a bullish sentiment for Bitcoin's price rally into six digits [1][4]. Group 1: Options Market Activity - There has been a notable increase in the number of active contracts for the $100,000 call option, with an increase of 420 BTC in the past 24 hours, translating to a notional open interest growth of $38.80 million [3]. - The total notional open interest for the $100,000 call option reached $1.45 billion, with January expiry accounting for $828 million [4]. - The flow of options is primarily driven by rollovers, with significant interest noted around the January 30 $100,000 calls [2]. Group 2: Price Movements and Sentiment - Bitcoin's price has risen approximately 5% in the first five days of the year, briefly exceeding $93,000, which could further boost demand for bullish options if the price surpasses $94,000 [5]. - The market sentiment remains bullish, reflecting the trends observed throughout 2025, where traders pursued call options with strikes ranging from $100,000 to $140,000 [4]. - A shift in post-December expiry positioning has been noted, with BTC perpetual funding on Deribit exceeding 30%, indicating that dealers are now short gamma to the upside [6].

Core Insights - The first major derivatives settlement of 2026 involves over $2.2 billion in Bitcoin and Ethereum options, with Bitcoin contracts dominating the notional value at approximately $1.87 billion [2][7] - The settlement is occurring as Bitcoin trades near $88,972, just above the max pain level of $88,000, which is significant for traders monitoring potential volatility [2][7] Open Interest and Market Positioning - Open interest data indicates a bullish market sentiment, with 14,194 call contracts against 6,806 puts, resulting in a put-to-call ratio of 0.48, suggesting traders are positioning for higher prices [3] - Overall open interest remains high, with 80,957 calls versus 49,998 puts, leading to a put-to-call ratio of 0.62, reinforcing the bullish outlook [4] Ethereum Options and Market Sentiment - Ethereum's options structure reflects cautious optimism, with traders showing less aggressive positioning compared to Bitcoin, indicating a preference for potential upside rather than defensive strategies [5] - The settlement period is critical as it may concentrate price action around max pain levels, benefiting option sellers if prices gravitate toward these strikes [6][5] Implications for Market Volatility - The timing of this settlement is crucial as it may set the tone for market volatility in the upcoming quarter, with historical data suggesting that major options events can act as volatility unlocks [7] - Positioning data shows that Bitcoin block trades are skewed towards calls at 36.4% of volume, while Ethereum's block trade activity is even more pronounced with calls at 73.7%, indicating a strategic long-term positioning [8] Future Outlook - There is sustained interest in Bitcoin options concentrated in later 2026 maturities, particularly for March and June, while Ethereum shows consistent interest across quarterly tenors throughout the year, suggesting a positive outlook for both assets [9]

Core Insights - The crypto markets are experiencing a significant event with over $27 billion in Bitcoin and Ethereum options expiring on Deribit, marking one of the largest structural resets in crypto history [1][4] - Bitcoin options account for $23.6 billion of the expiring total, while Ethereum options make up $3.8 billion, indicating a substantial market activity [2] - The current prices for Bitcoin and Ethereum are approximately $88,596 and $2,956, respectively [2] Group 1: Options Expiry Details - The options expiry is notably higher than previous weeks, coinciding with the last Friday of the month and the year, covering both monthly and quarterly options [2] - Call options dominate the market, outnumbering puts nearly three to one, indicating a bullish sentiment among traders [3] - The "max pain" levels are set at $95,000 for Bitcoin and $3,000 for Ethereum, where options sellers are likely to profit the most [3] Group 2: Market Reactions and Trends - This expiry represents over 50% of Deribit's total open interest, making it the largest on record, prompting analysts to consider how the market will react post-expiry [4] - Rollover activity is prevalent as institutions shift positions to January contracts, which may create noise in short-term options data [5] - Despite the size of the event, Bitcoin's implied 30-day volatility index has decreased to around 42%, suggesting a calmer market environment [7]

Core Insights - The cryptocurrency market is experiencing significant downward volatility as a record options settlement day approaches, with Bitcoin (BTC) falling below $88,000 and Ethereum (ETH) failing to hold above $3,000 [1][3] - Defensive positions are increasing, and market liquidity is tightening, indicating a more cautious attitude among investors as they approach 2026 [1][3] Market Dynamics - The derivatives exchange Deribit is set to witness the largest options expiration in history, with over $28.5 billion in Bitcoin and Ethereum options set to settle, representing more than half of the platform's open interest, which could have a substantial impact on the spot market [1][3] - Market analysis suggests that the end-of-year expiration in 2025 signifies a shift from pure speculation to a policy-driven "super cycle" [2][4] Options Market Insights - There is a significant "max pain" point for Bitcoin around $96,000, with approximately $1.2 billion in open interest for put options below $85,000, which may exert additional pressure on spot prices during increased selling [2][5] - Despite expectations for Bitcoin's mid-term outlook to reach between $100,000 and $125,000, the rising costs of protective tools in the short term cannot be overlooked [2][5] - Current options skew data indicates that traders are not opting to take profits but are extending defensive positions to manage potential volatility [2][5]

LATEST: 📉 Bitcoin slipped below $88,000 on Monday ahead of Friday's record $28.5 billion options expiry on Deribit, with traders rolling defensive positions forward rather than closing them out. https://t.co/arKQfBZ5m2 ...

Acquisition Analysis - Coinbase paid $29 billion (2.9B) for Deribit's $1 trillion (1T) annual derivatives volume [1] - The acquisition could potentially pay for itself in 3 years based on Deribit's take rates [1] Market Position - Deribit has $59 billion (59B) in open interest [1] - Deribit dominates 85% of the Bitcoin options market [1] Strategic Implications - The company is building infrastructure essential for tokenized asset launches [1] - The company's stock trades like an exchange [1]