Crypto markets are facing the expiration of $27 billion worth of options on Bitcoin and Ether
Traditional markets ease off between Christmas and New Year's. The crypto options market gears up for a big shake. This Friday ends $27 billion in Bitcoin and Ethereum options on Deribit. Traders fear it yet track it close. A crypto Boxing Day.
A trader sweats in a tense room. He eyes a countdown on his tablet. It shows "27B" with Bitcoin and Ethereum logos on fire.
In short
$27 billion in BTC and ETH options expire on Deribit. That tops 50% of open interest. Put-call ratio hits 0.38. Calls lead by a wide margin. Bitcoin calls pile up from $100,000 to $116,000.
This expiry claims over 50% of Deribit's open interest. Much of the year's built-up risk will clear or shift. Price counts. Market setup counts more.
Bitcoin options total $23.6 billion. Ethereum ones hit $3.8 billion. Each covers one BTC or ETH. Numbers show the size. Tension stays low, unlike last December.
Volatility has eased. Deribit's DVOL for Bitcoin sits near 45%. Far off late November peaks. Back then BTC fell near $80,000. Market took the hits. Stress faded.
This quiet phase helps. Expiry may pass smooth. No rush sales. No sharp squeezes. Rare sign at this cycle point.
Bullish lean in the data
Put-call ratio of 0.38 tells the tale. For 100 calls, just 38 puts. Traders back a climb.
Bitcoin calls focus on strikes from $100,000 to $116,000. Bear side peaks at $85,000. No crash fears now. Upside expected.
Setup builds on year of trust. Crypto options grow steady. Institutions add discipline.
Max pain price looms near expiry. Bitcoin at $96,000. Ether at $3,100. Buyers hurt most there. Sellers cash in big. What follows matters. Puts from $70,000 to $85,000 rolled to January.