As the quarterly expiry of bitcoin (BTC) and ether (ETH) options contracts approaches, the crypto market braces for potential volatility. On Friday, Deribit, the world’s leading cryptocurrency options exchange, will settle contracts worth $15.2 billion1. Here’s what you need to know:

The $15 Billion Expiry

Deribit’s upcoming expiry is one of the largest in its history. It will wipe out 40% and 43% of Bitcoin and ether’s total notional open interest across maturities. Notional open interest refers to the dollar value of active contracts at a given time.

In-the-Money Options

Bitcoin and Ether

Many options are set to expire in-the-money (ITM), potentially injecting upward pressure or volatility into the market. A call option expiring ITM has a strike price lower than the underlying asset’s current market rate. Conversely, a put option expiring ITM has a strike price higher than the market rate. At the current market rate of around $70,000, bitcoin options worth $3.9 billion are set to expire in the money, accounting for 41% of the total quarterly open interest due for settlement. Similarly, 15% of ETH’s total quarterly open interest of $5.7 billion is on track to expire in the money.

Implications and Market Dynamics

The recent price rally has led to higher levels of ITM expiries, which could contribute to potential upward pressure or volatility in the underlying assets. As traders and investors closely monitor the expiry, the crypto market remains on edge, anticipating how these massive options settlements will impact prices and sentiment.


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