Deribit is set for a significant expiry event this Friday, with over $17 billion in crypto options.
Options Expiry on Deribit
Deribit is witnessing an expiry of options worth over $17 billion, marking it as one of the largest quarterly expiry events. The influence on Bitcoin and Ethereum prices is anticipated due to the substantial amount of expiring contracts, which account for 40% of Deribit's total open interest.
Expected Market Volatility
Traders are preparing for possible market impacts. According to Lin Chen, market confidence remains strong, yet volatility expectations are high. "The June $300K BTC call options have surfaced as the strike with the highest open interest, illustrating bold speculative positioning by traders...".
Historical Context and Conclusions
Previous significant expiries on Deribit, such as in March and December 2024, led to brief periods of sharp price fluctuations for Bitcoin and Ethereum. This historical context helps in predicting potential volatility.
The market is gearing up for high levels of volatility due to the options expiry on Deribit, likely impacting Bitcoin and Ethereum prices.
