On August 28, 2025, a record $14.5 billion in crypto options will expire, significantly impacting Bitcoin and Ethereum markets. This event creates conditions for potential short-term volatility.
Detailed Analysis
According to Gate Research, a record amount of $14.5 billion in crypto options, including $11.4 billion in BTC and $3.16 billion in ETH, is set to expire this Friday. This marks the largest delivery volume in 2025.
"The upcoming expiry marks the largest delivery volume for the year, significantly impacting Bitcoin and Ethereum," stated a Gate Research analyst.
Immediate Effects
Immediate effects include heightened market volatility driven by hedge unwinding and potential price suppression. BTC shows bearish sentiment while ETH exhibits some optimistic trends, supported by ETF inflows.
Market Expectations
Financial data reveal a contrast in BTC's bearish position with a 1.6 put/call ratio, while ETH shows a lower ratio of 0.7, signaling different market expectations. Historically, such large-scale expiries lead to temporary volatility spikes and profit/loss realization, influencing market behavior around expiry time.
The expiration of record volumes of crypto options presents significant market risks and opportunities, shifting price dynamics for Bitcoin and Ethereum in the short term.
