This Friday, $14 billion worth of Bitcoin options open interest (OI) will expire. According to data released by Deribit exchange CEO Luuk Strijers, the ratio of put options to call options for this expiration is 0.69, meaning there are 7 put options for every 10 call options. This indicates a certain level of bearish sentiment in the market. At the same time, the number of contracts expiring this time (146,000) is also significant, being twice the number of contracts expiring in March 2025 (73,000).
Strijers further explained that the expiring contracts account for 44% of the total open interest in Bitcoin options (with a total of $32 billion). Deribit expects that more than $4 billion worth of contracts will be exercised at expiration, which will inevitably trigger a large amount of trading activity. Deribit’s volatility index (DVOL) has been fluctuating sharply recently, and Strijers pointed out that this indicates there is still considerable disagreement among traders about the future trend of the market.
Strijers emphasized, "The previously dominant bullish momentum is weakening, and the market is currently in a high-leverage upward state. If a significant drop occurs, it could trigger a rapid backlash. Everyone's attention will be focused on the upcoming options contract expiration date, as it could set the tone for the market trends in 2025."
