Tomorrow Marks a Significant Event for Bitcoin and Ethereum: Expensive Options Set to Expire! Analysts Predict Potential Volatility

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by Giorgi Kostiuk

2 years ago

Made with AI


Despite the continuous fluctuations observed in Bitcoin and Ethereum, there is an upcoming expiration of three-month options contracts.

Tomorrow, a substantial amount of BTC and ETH options, totaling $15.2 billion, will reach maturity on Deribit, a prominent cryptocurrency options exchange.

This represents one of the largest expirations in stock market history, with most of the BTC and ETH options anticipated to end profitably by the end of Friday.

Luuk Strijers, the chief trading officer at Deribit, expressed his concerns to Coindesk regarding the situation. He suggested that the impending expiration of numerous options, most of which will be in the money, could lead to potential upward pressure or increased volatility in the market.

Furthermore, Bitcoin options valued at $3.9 billion and Ethereum options worth $5.7 billion are set to expire. These figures make up a significant portion of the total open interest within the three-month period.

Considering the recent surge in prices, analysts believe that the expiration of these profitable options might exert upward pressure or volatility on the respective assets.

Deribit's management noted that in the event of corrections following maturity, BTC and ETH are expected to move towards their maximum loss thresholds of $50,000 and $2,600, respectively. Despite historical corrections during previous bull markets, these cryptocurrencies aim to maintain their current upward momentum with minor downtrends.

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