Crypto Options Expire: $30B BTC and ETH Contracts Impact
- $24 billion in Bitcoin options and $6 billion in Ethereum options expired on Deribit.
- Options expiry represents over half of Deribit’s total open interest.
- Potential for 5-7% price swings due to low-liquidity markets.
$24 billion in Bitcoin and $6 billion in Ethereum options are set to expire on Deribit this Friday, marking a significant moment for the cryptocurrency market.
This expiry event might trigger notable volatility, with potential price swings and rollover trades influencing market dynamics.
The expiry of $30 billion in crypto options on Deribit marks a historic event, affecting Bitcoin and Ethereum markets globally. The expiration includes $24 billion in Bitcoin and $6 billion in Ethereum options.
Deribit, leading the crypto options exchange, witnesses over half of its total open interest actions. This presents a significant market movement, with call options outnumbering puts by almost 3:1.
The immediate market effects are notable, with anticipated 5-7% price swings amid low-liquidity conditions. The expirations could see Bitcoin prices dip to $82k-$84k before a potential rally.
Spot prices pre-expiry were approximately $89,394 for Bitcoin and $2,987 for Ethereum, indicating possible volatility. No new funding or institutional allocations were identified tied directly to the expiry.
The expiration of these options is the largest ever for Bitcoin by notional value, marking a crucial point for the market. Historical similarities suggest that such events lead to extended volatility into the new year.
Market analysis shows rollover trades have increased, creating signal noise and impacting reliable options data.
This creates significant signal noise, making options data unreliable as a trading signal in recent days. – Greeks.live, Analytics Account
Regulatory and institutional responses remain unreported, suggesting a focus on market self-adjustments post-expiry.
