🔔Nearly $8 billion in cryptocurrency options are about to expire, and the Bitcoin and Ethereum markets may see huge fluctuations!
The cryptocurrency market is about to enter a busy period, as more than $5.8 billion worth of Bitcoin and more than $1.8 billion worth of Ethereum options contracts are about to expire on September 27 (this Friday).
According to the Deribit exchange report, there are currently $5.836 billion worth of BTC options and $1.883 billion worth of ETH options to be settled, of which about 20% are in-the-money options.
Now there are a large number of Bitcoin and Ethereum options about to expire, of which 20% of these Bitcoin options are "in-the-money" options, and the same is true for Ethereum options. This means that there may be more option references who will choose to close their positions at this critical time node, causing a wave of market fluctuations.
Deribit CEO Luuk Strijers mentioned that market volatility may increase as traders prepare to close or roll over their positions. Rollover is a strategy in which traders extend the holding period by closing expiring contracts and opening new ones.
On the other hand, the positive attitude of the U.S. Securities and Exchange Commission (SEC) towards options linked to the BlackRock Bitcoin ETF (IBIT) may attract more institutional investors to the market.
Pricing and market sentiment for options in the coming months show that investors are bullish on Bitcoin and Ethereum, with a negative bearish-call skew, indicating that call options are more popular than put options.
🧐 What do you think about the impact of the upcoming options expiration this Friday on the market? What strategy will you adopt under the current market sentiment?
