A significant Bitcoin (BTC) and
A significant Bitcoin (BTC) and Ether (ETH) options expiry on the crypto exchange Deribit is set to take place this Friday, shaking up the market. Options contracts give the buyer the right to buy or sell the underlying asset at a later date. In this case, 146,000 Bitcoin options contracts valued at nearly $14 billion will expire, representing 44% of the total open interest for all BTC options across different maturities.
This is the largest expiry
This is the largest expiry event ever on Deribit. ETH options worth $3.84 billion will also expire. Deribit accounts for over 80% of the global crypto options market. Significant open interest, worth $4 billion, will expire in the money, generating a profit for buyers and potentially causing market volatility.
The put-call open interest ratio
The put-call open interest ratio for Friday’s expiry is 0.69, meaning there are seven put options open for every 10 calls outstanding. This indicates a skewed leverage to the upside. However, since the Fed’s decision on interest rates and potential purchases, BTC’s bullish momentum has faltered, causing a drop of over 10% in value.
Traders with bullish bets are at risk of magnified losses, which could lead to market volatility. The upcoming expiry has the potential to shape the narrative heading into the new year.
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