Crypto volatility, options expirations create perfect storm, Deribit says
With dropping volatility and looming end-of-quarter options contracts expiration s, crypto markets are poised for an interesting week. Analysts say the recent rally has investors rethinking their positions. Exchange Deribit has around 150,000 bitcoin options contracts worth about $4.5 billion set to expire on Friday. The exchange also has about $2.3 billion worth of ether (ETH) options contracts expiring on the same date. Bitcoin (BTC) and ether were trading at $30,701 and $1,896, respectively, at time of publication. “BTC Max Pain at a significantly reduced level of $26,000 might alleviate the prevailing downward pressure on prices following the expiration,” Shaun Fernando, chief risk officer at Deribit, said. “With an impressive open interest of over $350 million at the $30,000 strike, the approaching quarterly expiration promises an exhilarating conclusion, carrying the potential for price turbulence amidst diverse gamma hedging strategies.” Analysts agree, open interest i...