**Bitcoin and Ether Options Worth $17 Billion Set to Expire on Deribit This Friday**
Bitcoin and ether options with a combined notional value of approximately $17 billion are scheduled to expire this Friday on the Deribit exchange. This expiry marks one of the largest monthly options settlements of the year, spotlighting significant activity and potential price volatility in the crypto markets.
### Bitcoin Options Overview
The bitcoin options expiring include 72,716 call option contracts and 54,945 put option contracts, representing a total open interest of around $14.4 billion. Bitcoin is currently trading near $113,000, with the max pain level—the price at which the greatest number of options expire worthless—situated at $114,000.
Max pain is a concept referring to the price point where option buyers experience maximum losses and option writers face the least financial impact. Market action often gravitates toward this level ahead of expiry as market makers adjust hedges, though this behavior is debated among traders.
### Ethereum Options Snapshot
On the ether side, 375,225 ETH in call open interest and 262,850 ETH in put open interest amount to a total notional value of about $2.6 billion. Ether’s max pain level stands at $4,110, while the current trading price is near $4,000.
### Market Sentiment and Volatility Expectations
A striking 82.5% of the open interest in these options consists of out-of-the-money (OTM) contracts, indicating that many traders are positioning for significant price swings rather than simply hedging existing holdings. Call options are heavily clustered around strike prices of $120,000 and $130,000 for bitcoin, while put options dominate at $100,000 and $110,000 strikes.
The put-call ratio further emphasizes a bullish sentiment, with bitcoin’s put-call ratio at 0.76 and ether’s at 0.70, showing a higher demand for call options compared to puts.
### Upcoming Catalysts
Heightened market volatility may be on the horizon as the Federal Reserve is scheduled to meet this week to set U.S. interest rates. Additionally, major tech companies will report earnings, two factors that historically influence crypto market dynamics. Traders are therefore bracing for potential sharp movements in prices around these events.
### Shift in Bitcoin Options Market Share
Previously, Deribit commanded nearly 80% of global bitcoin options open interest. However, since IBIT launched its options product in November 2024, Deribit’s market share has dropped to 44%, with IBIT claiming a matching 44%. This shakeup reflects increased competition and provides traders with more venues to engage in bitcoin options trading.
### Looking Ahead to Friday
As expiry day approaches, market participants will closely watch whether bitcoin and ether prices move toward their respective max pain levels at $114,000 and $4,110. This event will serve as a test of the max pain theory and could set the tone for the crypto market’s near-term direction.
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Stay tuned for updates on how this significant options expiry unfolds and its impact on Bitcoin and Ethereum price movements.
https://coincentral.com/crypto-markets-brace-for-17-billion-bitcoin-and-ethereum-options-expiry-on-friday/
