tl;dr
The impending quarterly expiry of bitcoin and ether options contracts worth several billion dollars could breed bullish price volatility, according to observers. Deribit, the world’s leading cryptocurrency options exchange, will settle quarterly contracts worth $15.2 billion, with bitcoin options ac...
The impending quarterly expiry of bitcoin and ether options contracts worth several billion dollars could breed bullish price volatility, according to observers. Deribit, the world’s leading cryptocurrency options exchange, will settle quarterly contracts worth $15.2 billion, with bitcoin options accounting for $9.5 billion or 62% of the total notional open interest due for settlement. Large amounts of options are set to expire in-the-money, potentially injecting upward pressure or volatility into the market, and dealer hedging activities could exacerbate volatility around $70,000.
On Friday at 08:00 UTC, Deribit, the world’s leading cryptocurrency options exchange, will settle quarterly contracts worth $15.2 billion. Bitcoin options account for $9.5 billion or 62% of the total notional open interest due for settlement, while ether options comprise the rest. Large amounts of 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 going market rate. At the going market rate of around $70,000, bitcoin options worth $3.9 billion are set to expire in the money, and ether options worth $5.7 billion are on track to expire ITM. The market could see upward pressure as the expiry removes the lower max pain magnet, potentially leading to some whippy, choppy moves around the $70,000 level.
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