“Bitcoin and Ethereum options worth a staggering $4.5 billion are on the brink of expiration, fueling anticipation and speculation in the cryptocurrency market.”
The crypto options market is bracing itself for a major event today that could have a significant impact on the prices and volatility of major cryptocurrencies like Bitcoin and Ethereum. According to data from Deribit, over $4.5 billion worth of options contracts in Bitcoin and Ethereum are set to expire at 8:00 UTC on Friday, October 27.
Options contracts give buyers the right, but not the obligation, to buy or sell an asset at a predetermined price on or before a specific expiration date. As these options contracts reach their expiration date, holders will have to make a decision whether to exercise their contracts or let them expire worthless.
This impending expiration could potentially lead to a spike in trading volume and volatility as market participants react to the exercise or expiration of large options positions. CoinDesk has reported that the current open interest in contract terms has increased to $20.64, significantly higher than in November 2021 when BTC was around $66,000.
It is important to note that this event comes after a period of positive price movement for top cryptocurrencies. Bitcoin has seen a rise from around $26,000 to over $34,000 in recent weeks, which has contributed to increased options trading activity.
Traders and investors will be closely monitoring the impact of this historic options expiration as it unfolds today. The $4.5 billion in contracts set to expire represents the scale of the crypto options market and how it can potentially drive price action and volatility in underlying assets.
Overall, this event highlights the growing significance of options trading in the crypto market and the potential for increased volatility and price movements based on the expiration of these contracts.