Both the bitcoin (BTC) and ethereum (ETH) markets could experience some additional volatility, as option contracts worth more than BTC 88,000 ($ 923 million) and ETH 460,000 ($ 157.6 million) will expire this Friday, analysts warned once again, while the previous big expiration failed to move the market.
According Deribit, the crypto derivatives exchange, next Friday marks an expiration date even higher than the August record of BTC 65,000 on options contracts, with a large majority of contracts held on Deribit.
Meanwhile, as the crypto research firm pointed out Coin Metrics In their latest network status report, the day will also be significant for ETH options, with Friday being the largest expiration day for ETH on the exchange.
"This event will likely add additional volatility to price action throughout the week as traders look to hedge exposure in these positions, work with them, or possibly take action on the spot market in advance," Coin Metrics said. on the expiration of ETH options.
Data from crypto analytics firm Skew also confirms Deribit's warning, although Skew uses a slightly higher overall figure for the bitcoin options market, with contracts worth 88,100 BTC set to expire on Friday, according to this data provider. .
Similarly, Skew's data also shows how Friday will be a big day for the ETH market, with options worth ETH 460,400 expiring on all exchanges.
However, during the days prior to the expiration of major bitcoin options, little happened in the spot market. A good example of this occurred on June 26 of this year, touted in advance as "the largest option expiration in history" with contracts worth 74,000 BTC expiring, when the price of bitcoin remained mostly within out of a range of $ 100, between $ 9,100 and $ 9,200.
Deribit is by far the largest player in the bitcoin options market, accounting for 73% of open interest in the market yesterday. The exchange is followed by CME, which is generally considered to represent more institutional traders, and OKEx, focused on retail, with 14% and 6% of the market, respectively.
The expiration day for the top options comes when cryptocurrency analytics firm Skew said that the bitcoin options market has now grown to $ 100 million "almost every day." The current level is above about $ 2 million a day when Skew started tracking the market, said signing it in a Twitter post today.
At the time of writing, BTC is almost unchanged in a day, trading at $ 10,517. The price rose 0.64% in the last 24 hours. ETH was also unchanged today, trading at $ 343, while its price is up 0.51% in the past 24 hours.