Bitcoin and Ethereum Options Expiry Expected to Drive Market Surge This Friday

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The expiration of $10 billion in Bitcoin and Ethereum options this Friday is expected to bring upward momentum to the market.
Conversations around crypto derivatives are reaching a critical juncture with major expiries on the horizon.
“The size of the expiry is over $10 billion,” said Deribit CEO Luuk Strijers in an interview with Coindesk.

Don’t miss the latest developments as $10 billion worth of Bitcoin and Ethereum options expire, signaling potential market volatility and critical movements.

Current Standing of Bitcoin and Ethereum Options

This Friday at 11:00 AM, crypto exchange Deribit will see the expiration of $6.68 billion in Bitcoin (BTC) options and $3.5 billion in Ethereum (ETH) options. The approach of expiries, representing over 40% of the open interest of positions exceeding $23 billion, could amplify market volatility. Large quarterly expiries like these typically catalyze significant market movements.

Market Impact and Expectations

More than 25% of Deribit’s open positions, worth over $2.7 billion, are set to expire soon. Strijers highlighted, “The size of the expiry is over $10 billion.” With a significant portion of these positions nearing their expiry, a considerable number of derivatives contracts are projected to be profitable for their holders at settlement. Bitcoin has fallen about 9% this month, dipping below $60,000, while Ethereum saw nearly a 10% decrease, affecting altcoins.

Factors Influencing Market Movements

Strijers attributed the recent decline to miner activities, Germany’s BTC sales, and the anticipated transfer of Mt. Gox coins around early July. Despite the short-term bearish trend, traders are optimistic about Bitcoin by mid-July and expect positive changes for Ethereum by early July, coinciding with the launch of ETH ETF trades in the first week of the month.

Conclusion

The impending expiration of substantial Bitcoin and Ethereum options is anticipated to incite volatility and significant market activity. As traders brace for these movements, the market outlook remains cautiously optimistic, particularly with potential ETF inflows and key market events on the horizon. Investors should stay informed and conduct thorough research before making any trading decisions.