Bitcoin and Ethereum Options Worth $1.8 Billion Set to Expire Today

Nearly $1.8 billion in Bitcoin (BTC) and Ethereum (ETH) options are expiring today, stirring expectations of increased market turbulence.

This event is particularly noteworthy due to the forthcoming launch of spot Ethereum exchange-traded funds (ETFs).

Data from Deribit indicates that 20,679 Bitcoin contracts, valued at roughly $1.31 billion, are set to expire. These contracts have a higher prevalence of calls over puts, with a maximum pain point of $62,000. Similarly, 142,583 Ethereum contracts, worth over $483.84 million, will also expire, with a maximum pain point of $3,150.

Deribit analysts pointed out strategic movements in the market this week. For instance, Kraken’s repayment notice to Mt Gox creditors led a fund to adjust its options strategy from December to August to better navigate potential price changes.

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The crypto options market often sees sharp price shifts around expiration dates, and today’s event is expected to be no different. With the upcoming Ethereum ETF launch, ETH has seen a rally, though the gap between BTC and ETH has narrowed.

Market analysts from BlockScholes and Bybit have noted a distinct behavior in ETH derivatives compared to BTC, likely due to the ETF anticipation. BlockScholes’s Senti-Meter Index indicates a more favorable investor outlook for ETH.

Overall, while options expirations can cause short-term volatility, the market generally stabilizes afterward. Traders should stay vigilant and consider technical indicators and market sentiment to navigate the potential fluctuations effectively.

Alexander Stefanov