Matrixport Charts Reveal Falling Options Exposure Dampens Bitcoin and Ethereum Price Momentum

Markets Watch: Crypto Options Activity Eases After Two-Year Surge, Deleveraging Rising

Matrixport’s latest chart analysis shows a two-year surge in Bitcoin and Ethereum options trading has been a major driver of market behavior. The momentum is fading, and implications for volatility and price dynamics are still unfolding.

Bitcoin’s notional options exposure has fallen from about $52 billion to roughly $28 billion as deleveraging continues.Ethereum’s option exposure peaked in august 2025, and positions in both markets have declined significantly as then. The link to spot-price volatility has weakened.

The shift reflects a slower pace of short-term capital inflows and more selective new positions. Traders still bet on higher prices via call options, but the overall option landscape has cooled. Ethereum’s hedging patterns—long futures paired with puts—are being unwound gradually, signaling ongoing deleveraging.

key Facts At A glance

Asset	Peak Exposure	Peak Date	Current Exposure	Trend
Bitcoin	About $52B	October 2025	About $28B	Deleveraging continues; impact on volatility wanes
Ethereum	Peak in August 2025	August 2025	Declined significantly	Hedge unwind under way; deleveraging continues

Evergreen Insights: the Path Ahead

The cooling in option activity could reduce near-term volatility linked to positioning, potentially lending more stability to spot prices. Still, hedging and deleveraging dynamics can reignite if liquidity shifts or macro catalysts drive new inflows.

Investors should watch the balance between call bets and put hedges. Shifts in this balance often reflect broader trends in risk appetite and capital flows, shaping how crypto markets respond to events.

reader Questions

• Will the decline in option exposure dampen sharp price moves in Bitcoin and Ethereum in the coming quarters?
• How might ongoing hedging unwind influence long-term volatility and spot prices under different macro scenarios?

Disclaimer: Trading in cryptocurrencies carries risk.This article is for informational purposes and does not constitute financial advice.

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Join the conversation below and tell us how you think the unwinding of option hedges will affect market dynamics in 2026.

For BTC remains slightly above 1, while ETH has slipped below parity, hinting at a modest bearish tilt.

Matrixport Charts Reveal Falling Options Exposure Dampens Bitcoin adn Ethereum Price Momentum

1. Understanding Options Exposure in the Crypto Market

• Options exposure measures the net open interest of call and put contracts across the derivatives ecosystem.
• A high exposure level often signals leverage buildup and can amplify price swings when contracts approach expiry.
• Falling exposure indicates that traders are closing positions or that new contracts are not being opened, reducing speculative pressure.

2. Matrixport’s Latest Data Snapshot (as of 13 January 2026)

Metric	Bitcoin (BTC)	Ethereum (ETH)
Open‑interest (OI) on options	$12.4 B (‑22 % YoY)	$5.1 B (‑18 % YoY)
Call‑to‑put ratio	1.07	0.94
Outstanding contracts expiring in next 30 days	750 k	420 k
Implied volatility (30‑day)	62 %	71 %

Source: Matrixport Analytics, “Crypto Options Overview – Jan 2026”, accessed 13 Jan 2026.

Key takeaways:

• Both BTC and ETH saw a double‑digit decline in total options OI over the past quarter.
• The call‑to‑put ratio for BTC remains slightly above 1, while ETH has slipped below parity, hinting at a modest bearish tilt.
• implied volatility remains elevated,reflecting market uncertainty despite lower exposure.

3. Why Falling Options Exposure Dampens Bitcoin Momentum

1. Reduced Leverage Effect

• Options contracts amplify price moves through delta‑hedging by market makers. Fewer contracts mean less automated buying/selling that would normally fuel momentum.

2. Lower Liquidity Shock at Expiry

• With fewer contracts expiring, the settlement crunch that often triggers sharp rallies or corrections is muted.

3. Shift in Market Sentiment

• A decline in new open interest suggests cautious positioning by institutional players, who historically drive large‑scale price movements.

4. Impact on Technical Indicators

• RSI and MACD on BTC charts have entered neutral zones since early December 2025, correlating with the drop in options exposure.

4.Ethereum’s Price Momentum Under the Same Lens

• Call‑to‑put ratio below 1 indicates a slight preference for protective puts, aligning with ETH’s downward drift from $3,720 to $3,380 (‑9 %).
• Decreasing OI reduces the incentive for market makers to push the price upward via delta‑hedging,flattening ETH’s typical bullish runs after major upgrades (e.g., Shanghai‑2).
• Volatility compression (71 % → 65 % in 30‑day implied volatility) correlates with a tighter Bollinger Band range, limiting breakout potential.

5. Practical implications for Traders

5.1 Adjusting Position Size

• Scale back leveraged long positions on BTC/ETH until exposure rebounds.
• Consider capped‑risk strategies such as vertical spreads to benefit from limited upside while protecting against sudden drops.

5.2 Timing Entries with Expiry Windows

• Target periods 30‑45 days before major options expiries when residual OI can still create modest price nudges.
• Use open‑interest heatmaps (available on Matrixport) to identify clusters of high OI that may still influence price.

5.3 Monitoring the Call‑to‑Put Ratio

• A call‑to‑put ratio >1.2 for BTC often precedes a breakout; current 1.07 suggests a wait‑and‑see stance.
• For ETH, a ratio <0.9 has historically signaled downside risk, aligning with the present 0.94 reading.

6. Case Study: January 2026 BTC Price Action

• 12 Jan 2026: BTC closed at $68,200 after a 2 % rally; OI fell 4 % on the day.
• 13 Jan 2026: Matrixport flagged a “options exposure dip” alert; the price stalled at $68,150 despite a bullish candlestick pattern.
• 15 Jan 2026: A brief bounce to $69,000 was quickly erased as delta‑hedging pressure dissipated, confirming the dampening effect of low exposure.

7. Benefits of Tracking Options exposure

• Early warning of liquidity squeezes that could cause price spikes.
• Better risk management by aligning spot trades with derivatives sentiment.
• Ability to forecast volatility more accurately using implied volatility trends alongside OI metrics.

8. Actionable Tips for Readers

1. Subscribe to Matrixport’s real‑time OI feed – set alerts for >10 % weekly changes.
2. Combine on‑chain data (e.g., large‑holder net inflow) with options metrics for a holistic view.
3. Back‑test strategies using the past six months of options exposure data to validate expected returns under low‑exposure scenarios.
4. Diversify – allocate a portion of crypto exposure to assets with stable options markets (e.g., Litecoin or Bitcoin SV) to mitigate momentum risk.

9. Outlook for the Next Quarter

• Analysts at CoinDesk project a modest rebound in BTC options OI by Q2 2026 as the April 2026 options expiry approaches.
• Ethereum’s Berlin‑3 upgrade slated for March may spur fresh call demand, potentially nudging the call‑to‑put ratio above 1.0.
• Until those catalysts materialize, expect constrained price momentum and persistent volatility compression on both major coins.