A big event in the cryptocurrency market, data shows that a total of 158,774 Bitcoin BTC 0.72% options worth $4.8 billion and 1.23 million Ethereum ETH 0.49% options worth $2.3 billion are scheduled to expire and settle on the Deribit exchange in June, marking the Expiry settlement of $4.8 billion worth of Bitcoin and Ethereum options.
Luuk Strijers, chief commercial officer at Deribit, said the impending expiry date has drawn attention due to recent bitcoin price action, with the digital asset rallying to around $30,000.
Compared to last June when Deribit saw approximately 90,000 bitcoin contracts expire, the current numbers indicate a significant uptick in interest and participation in the cryptocurrency options market.
Key trigger prices for Bitcoin and Ethereum are $26,000 and $1,700, respectively. These levels are very important to watch because if they are breached, it could affect the market dynamics.
Traders and market participants are keeping a close eye on market sentiment, bracing for potential price swings after a slew of options contracts expire.
Deribit, one of the world’s leading cryptocurrency options exchanges, expects heightened activity and volatility during expiration and settlement.
As options expire, market makers may face pressure from both sides. If bitcoin soars, they may need to buy more to hedge their short positions, pushing the price higher. Conversely, a drop in Bitcoin’s price could lead to a faster sell-off as market makers attempt to liquidate their positions.
The imminent expiration and settlement of $7.1 billion worth of Bitcoin and Ethereum options on the Deribit exchange has caused a lot of concern in the cryptocurrency community.
