The crypto derivatives market is bracing for significant changes as over $14.6 billion worth of Bitcoin and Ether options are set to expire on Friday.
Traders Lean on Bitcoin Puts
According to Deribit Metrics, over 56,452 call option contracts and 48,961 put contracts are due for settlement, representing a notional open interest of $11.62 billion. While calls outnumber puts, open interest distribution shows a heavy concentration of put options around strike prices between $108,000 and $112,000, levels close to Bitcoin’s current market price of around $110,000. This positioning suggests that many traders are hedging against a potential short-term decline, even as others bet on a recovery with calls clustered at $120,000 and above.
Ether’s Balanced Setup
Ether’s options expiry, while smaller in scale, is still notable. 393,534 call contracts are set to expire versus 291,128 puts, amounting to a combined $3.03 billion in notional open interest. Unlike Bitcoin, Ether’s distribution is more balanced, with calls concentrated at $3,800, $4,000, and $5,000 strike levels, while puts are most active at $4,000, $3,700, and $2,200. This positioning reflects a neutral to mildly bullish outlook for ETH, with traders betting on both protection against dips and potential upside should momentum return.
Options Expiry Could Set Market Tone
Deribit noted that the skew toward BTC puts signals persistent demand for downside protection, while Ether’s neutrality suggests a market waiting for clarity. The timing also coincides with Federal Reserve Chair Jerome Powell’s remarks, which could influence risk sentiment heading into September. Options expiries of this magnitude often act as inflection points for volatility. With Bitcoin’s max pain point at $116,000 and Ether’s at $3,800, price movements around these levels could drive short-term market dynamics as contracts settle.
As the $14.6 billion options expiry unfolds, attention will be on whether Bitcoin stabilizes under heavy put positioning, or if bullish momentum prevails.
