CandleFocus

Bitcoin's $5.8B Quarterly Options Expiry May Spark Market Swings, Deribit Says

Author: Content Editor
On Friday, a significant amount of bitcoin and ether options contracts are set to expire, potentially leading to price swings in the market. The expiration of these options contracts, worth several billion dollars, could result in heightened market volatility as traders close or roll over their positions. About 20% of bitcoin options contracts are "in-the-money," meaning they have favorable strike prices compared to the current market rate. This could impact prices as holders exercise their right to buy or sell profitably. Looking ahead, the approval of options tied to BlackRock's bitcoin ETF could further accelerate institutional adoption and drive activity in the market. The current max pain level for bitcoin's expiry on Friday is $59,000, which could create downward pressure on prices as it is below the spot price. However, the overall outlook in the options market remains bullish, with calls being relatively more expensive than puts, indicating a positive sentiment for bitcoin and ether.

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