$5.8 billion wait in Bitcoin: Critical on Friday

The $5.8 billion Bitcoin option expires on Friday. This amount will be one of the most important option closures of 2024. "The price of Bitcoin can be significantly affected," said Deribit CEO Luuk Strijers.

Author Burak Köse

The $5.8 billion options contract will expire on Friday in Deribit, the largest crypto derivatives exchange. It is estimated that this may significantly increase volatility in the cryptocurrency market.

Speaking to The Block, Deribit CEO Luuk Strijers said, “The option contracts, which will expire at the end of September, are currently the second largest options in Deribit in terms of overall size. On Friday, the value of the expired options may be over 5.8 billion dollars and this situation can create a significant movement and volatility in the market.” said.

According to Strijers, a large amount of Bitcoin options that expire can increase price fluctuations and significantly affect the price of Bitcoin as investors close or extend their positions.

The outlook for both Bitcoin and Ether is positive

Strijers also emphasized that the decline in the buy-to-buy option ratio, which is currently 0.62, is an indicator of the increasing upward trend in the market. The CEO of Deribit stated that this situation, which applies to both Bitcoin and Ether, strengthens the positive outlook, with the fact that buy options for longer-term contracts are more expensive than sell options.

Option contracts give the buyer the right to buy or sell the underlying asset at a specific price on or before a specific date. There are two types of option contracts. The call option gives the right to buy an asset, and the put option gives the right to sell.