Crypto Markets Bracing for Massive Options Expiry

As the month comes to an end, a large batch of cryptocurrency options contracts are set to expire today, potentially affecting both Bitcoin and Ethereum markets.

The expiry event, which involves around 115,500 Bitcoin options contracts with a notional value of $7.8 billion, could lead to increased volatility in spot markets. According to Deribit, the derivatives provider, call open interest dominates across both assets, with Bitcoin carrying significantly larger notional weight into settlement.

In addition to the oversized batch of Bitcoin options, around 477,000 Ethereum contracts are also expiring today, with a notional value of $963 million. This brings the total notional value of crypto options expiries to around $9 billion.