Crypto Markets Bracing for Volatility as $9 Billion Options Contracts Expire

Crypto markets are bracing for potential volatility today as a massive batch of options contracts expires. According to Deribit, the notional value of Bitcoin options expiring is around $7.8 billion, while Ethereum's notional value stands at approximately $963 million.

The put/call ratio for both assets is skewed towards calls, indicating that more long positions are set to expire than short positions. However, max pain for Bitcoin remains far above current spot prices, suggesting that many of these contracts will be out of the money on expiry.

Total open interest across all exchanges has been increasing this month, reaching $37 billion for Bitcoin options alone. The expiration of these contracts accounts for 20% of total open interest, totaling nearly $9 billion.