$1.9 Billion Worth of Bitcoin Options to Expire Today
Deribit, the leading crypto options exchange, will settle $1.9 billion worth of Bitcoin options contracts and $893 million worth of Ether options contracts that are set to expire today.
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Posted 8/25/2023, 6:34:47 PM
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The upcoming settlement of BTC and ETH options contracts could potentially push the prices of the cryptocurrencies closer to the max pain levels of $28,000 and $1,800, respectively, as sellers of call and put options try to make their counterparts suffer the most, according to Deribit, the world's leading crypto options exchange.
The upcoming $1.9 billion Bitcoin options expiry on August 25 will determine if the $26,000 support level holds, while regulatory challenges and a potential loss of $380 million add to the bearish sentiment in the cryptocurrency market.
Bitcoin continues to trade below $26,000, with the crypto market experiencing a sideways trend, while Deribit's options segment saw increased trading volume in August.
Bitcoin and Ethereum options are set to expire today, with a smaller number of contracts compared to previous weeks, potentially impacting the lackluster prices of both cryptocurrencies, as Bitcoin remains range-bound around the $26,000 level.
Stock options worth $3.4 trillion are set to expire on Friday, potentially leading to increased volatility and price declines in both the S&P 500 and Bitcoin, with September historically being a negative month for these assets. There is also a possibility of a surprise interest rate hike by the Federal Reserve, which could impact risk assets.
Crypto strategist Credible Crypto suggests that Bitcoin could dip to around $24,900 but still remain on track for a bull market cycle, and he is closely monitoring Bitcoin options open interest as an indicator for the market bottom.