Impending Expiry of $10 Billion Worth of Bitcoin and Ether Options on Deribit
The crypto derivatives market is buzzing with anticipation as over $10 billion worth of bitcoin and ether options are set to expire on Deribit this Friday. This represents a significant portion of the current open interest, with more than 25% of contracts expected to be profitable for their holders.
The impending expiry could lead to increased market volatility, as large quarterly expiries often result in higher trading volumes and unpredictable price movements. According to Luuk Strijers, CEO of Deribit, the expiry could be influenced by ‘quadruple witching’ and related volatility in U.S. stock markets.
Despite recent price drops in both bitcoin and ether, investors are showing a willingness to pay a higher premium for calls offering upside potential. This suggests that traders are optimistic about a positive shift for bitcoin by July 12 and ether by July 5.
Overall, the crypto derivatives market is bracing for a potentially volatile period ahead of Friday’s expiry, with traders closely monitoring the options skew for clues about future price movements. Stay tuned for updates as the market reacts to this significant event.
