Deribit Options Expiry Looms as Bitcoin, Ethereum Prices Slide

Bitcoin fell below $88,000 on Monday during US trading hours after initially climbing above $90,000 earlier in the session. Ethereum also declined below $3,000 as cryptocurrency prices moved steadily lower throughout the afternoon.

The impending expiration of over $28.5 billion in Bitcoin and Ethereum options on Deribit is likely contributing to the price drop. This represents the largest expiration in Deribit's history, with more than half of its total open interest totaling $52.2 billion.

According to Jean-David Pequignot, Deribit's chief commercial officer, this year-end expiry marks a shift from speculative cycles to a policy-driven supercycle, reflecting increased institutional maturity.

The level of $96,000 is considered maximum pain for Bitcoin, where option writers stand to benefit most. There is notable concentration at the $85,000 strike in puts, with $1.2 billion in open interest that could pull spot prices lower if selling pressure builds.