Deribit, a leading crypto options exchange, is gearing up for a monumental week with over $15 billion in options set to expire for Bitcoin and Ethereum. This event marks a significant milestone in Deribit’s history, with a massive amount of options contracts reaching their expiration date this Friday.

The expiration includes $9.5 billion in BTC options open interest out of $26.3 billion and $5.7 billion in ETH options open interest out of $13.2 billion, accounting for 40% and 43% of the total OI, respectively. The figures are substantially higher than usual, attributed to the recent price rally in both cryptocurrencies. This surge in options expiring is expected to bring about upward pressure or volatility in the underlying assets.

According to Deribit, at a price level of $70,000, $3.9 billion in BTC options and $2.6 billion in ETH options will expire in the money. This significant expiration event is anticipated to induce market volatility, with market participants closely monitoring the situation.

Analyzing the market’s volatility further, Deribit notes a contango in the volatility surface for both BTC and ETH. The implied volatility levels for March 29 options are currently at 63% and 67%, respectively, with expectations of reaching a healthier 80% as the curve progresses. This observation suggests that market participants do not foresee significant price fluctuations until expiration.

In addition to the options expiring, $465 million in BTC March Future and $230 million in the March ETH future are set to expire, totaling approximately $695 million of the $1.9 billion currently outstanding. Deribit also highlighted the current open interest in its dated futures, with an OI of $1.9 billion, the highest in any crypto market. This high level of interest is driven by significant returns generated, sparking anticipation for substantial trading activity around the expiry period.

Overall, Deribit’s upcoming record-breaking week with over $15 billion in options set to expire for Bitcoin and Ethereum is expected to bring about significant market movements and trading opportunities. Stay tuned for more updates on the latest developments in the cryptocurrency market on Global Crypto News.

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