Expiring Crypto Options, crypto option expire. Photo by BeInCrypto Over $3.16 billion worth of Bitcoin and Ethereum options are set to expire on Friday at 08:00 UTC on Deribit, marking the final major derivatives settlement before Christmas. With liquidity thinning out as the holiday period approaches and positioning tightly clustered around key price levels, traders appear cautious, waiting for a clearer catalyst before committing to a direction. What to Expect as Nearly $3 Billion Bitcoin Options Expi ...

Core Insights - Approximately $6 billion in Bitcoin and Ethereum options are set to expire, testing market resilience as open interest and trader positioning reach new records [1][2] - The options expiry is occurring during a period of subdued volatility, with potential implications for market sentiment towards Bitcoin, Ethereum, and broader digital assets [2][8] Options Expiry Details - On October 24, $5.86 billion in options related to Bitcoin and Ethereum will mature at 8:00 UTC on Deribit, with $5.1 billion in Bitcoin options and $754 million in Ethereum options expiring [2][3] - The 'max pain' points for options expiry are identified at $113,000 for Bitcoin and $3,950 for Ethereum, which may influence trader expectations [4] Market Sentiment and Positioning - Current put-to-call ratios are 0.90 for Bitcoin and 0.77 for Ethereum, indicating cautious optimism towards potential price increases, despite near-term uncertainties [5] - Implied volatility is currently around 40 for Bitcoin and 60 for Ethereum, reflecting a pause in extreme price movements [6][7] - There is strong demand for long-dated Ethereum calls extending into 2026, suggesting optimism about Ethereum's long-term prospects [8] Macroeconomic Context - The options expiry coincides with significant macroeconomic events, including key US inflation data and the Federal Open Market Committee meeting, which could impact market dynamics [8] - Analysts warn that unexpected news could lead to renewed volatility in the market [9] Historical Context - Historically, options expiry has led to short-term price swings and volatility spikes, but conditions typically stabilize after the expiry time as traders adjust to the new market environment [10]