The Biggest Options Expiry Ever—What $27 Billion Means for Bitcoin and Ethereum

Core Insights - The crypto markets are experiencing a significant event with over $27 billion in Bitcoin and Ethereum options expiring on Deribit, marking one of the largest structural resets in crypto history [1][4] - Bitcoin options account for $23.6 billion of the expiring total, while Ethereum options make up $3.8 billion, indicating a substantial market activity [2] - The current prices for Bitcoin and Ethereum are approximately $88,596 and $2,956, respectively [2] Group 1: Options Expiry Details - The options expiry is notably higher than previous weeks, coinciding with the last Friday of the month and the year, covering both monthly and quarterly options [2] - Call options dominate the market, outnumbering puts nearly three to one, indicating a bullish sentiment among traders [3] - The "max pain" levels are set at $95,000 for Bitcoin and $3,000 for Ethereum, where options sellers are likely to profit the most [3] Group 2: Market Reactions and Trends - This expiry represents over 50% of Deribit's total open interest, making it the largest on record, prompting analysts to consider how the market will react post-expiry [4] - Rollover activity is prevalent as institutions shift positions to January contracts, which may create noise in short-term options data [5] - Despite the size of the event, Bitcoin's implied 30-day volatility index has decreased to around 42%, suggesting a calmer market environment [7]