A significant weekly expiry of Bitcoin and Ethereum options is approaching, with a combined notional value exceeding $9.5 billion. This large-scale expiry, concentrated on major derivatives exchanges like Deribit, introduces potential volatility into the cryptocurrency market as traders and market makers adjust or hedge their positions.
Key metrics indicate that a substantial portion of Bitcoin options are set to expire with a strike price near current trading levels, creating a "max pain" point that could magnetize the spot price. For Ethereum, the expiry is similarly sizable, adding to the overall market uncertainty. These events often force dealers to rebalance their delta hedging, which can lead to increased buying or selling pressure in the underlying spot market.
Market participants are closely monitoring the put/call ratio and the distribution of open interest around key strike prices to gauge potential directional pressure. Large expiries of this magnitude can act as a catalyst, amplifying existing trends or triggering short-term reversals as positions are rolled over or closed. Traders should anticipate heightened volatility and potential liquidity shifts around the settlement time. #BTC #tradingtips #MWAM_Crypto