Bitcoin and Ethereum Prepare for a $7.7 Billion Day
The Bitcoin (BTC) market could be quite eventful over the next two days. According to information provided by cryptocurrency exchange Deribit, options contracts worth several billion dollars will expire on Friday.
As of now, 90,000 BTC options contracts (worth around $5.8 billion) and $1.9 billion worth of Ethereum options will expire. Deribit holds more than 85 percent of the global cryptocurrency options trading volume.
Approximately 20 percent of the total $5.8 billion Bitcoin open positions are “profitable,” meaning they have more favorable strike prices compared to market prices. A similar picture applies to Ethereum options. Investors who are profitable can further move the market by profiting from price fluctuations.
Crypto Markets Could Be Volatile
Deribit CEO Luuk Strijers said, “Around 20% of BTC options are in the money. This large expiration could create volatility or movement in the market as traders close or renew their positions.”
In addition, the US SEC’s green light on options tied to BlackRock’s Bitcoin ETF is expected to boost institutional adoption. BTC’s “max pain” level is set at $59,000, which could put downward pressure on the price.
