This Friday, the crypto market is bracing for increased volatility as Bitcoin (BTC) and Ethereum (ETH) options contracts worth a whopping $10.7 billion are set to expire. This mass live expiry includes $9.4 billion in BTC options and $1.3 billion in ETH options, all expiring on the Deribit exchange at 08:00 UTC.¹ #eth #btc #btc100k $ETH $BNB $XRP
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The majority of BTC options, about 45%, are in-the-money (ITM), with 80% being call options. This means that option holders have a chance to lock in significant profits. On the other hand, 55% of the options are out-of-the-money (OTM), with a large portion being put options that would profit if prices drop.
Historically, these large quarterly expiries have led to notable price swings. With over 25% of open interest set to expire in-the-money, equivalent to over $2.7 billion, market volatility is expected to increase.²