TL;DR
- Nearly $17B in BTC and ETH options are set to expire on Deribit this Friday, potentially influencing short-term price movements.
- BTC traders are showing cautious optimism, while ETH traders are hedging more actively due to increased volatility.
- The options expiry comes amid BTC sentiment dipping sharply to extreme fear, highlighting heightened market attention and possible trading opportunities.
Close to $17 billion in monthly options for Bitcoin and Ethereum are scheduled to expire on Deribit this Friday at 08:00 UTC. While smaller than September’s $22 billion expiry, this event is attracting significant attention as traders assess potential short-term price movements. Open interest in longer-term options remains elevated at over $45 billion, marking a near one-year high and indicating strong ongoing engagement from institutional and retail participants. Several emerging market investors have also increased their participation, adding extra liquidity and diversity to the trading environment.
BTC Traders Show Cautious Optimism Amid Market Tension
Analysis from Deribit indicates that Bitcoin traders are positioning cautiously bullish, with call options slightly outweighing puts. Current trading sits below the maximum pain point of $114,000, suggesting that major downside hedging has eased. Market observers note that reduced US-China trade tensions have lowered immediate downside pressures, allowing traders to operate with more confidence. BTC traded around $109,881 ahead of the expiry, while short liquidity rebuilt up to $117,000, opening possibilities for a short squeeze. Trading volume has been steadily rising over the past week, reflecting renewed interest and strategic positioning.
ETH Traders Hedge Against Increased Volatility
Ethereum options are showing a 1.25 put-to-call ratio, signaling higher caution compared to BTC. The maximum pain level is set near $4,100, and many traders are positioning for potential downward movements. Despite notable interest from ETF buyers and decentralized asset trading companies, ETH remains highly volatile, which explains the heavier emphasis on protective hedging. ETH traded near $3,982 ahead of the expiry, with demand from institutional participants contributing to sustained liquidity in the market. Additionally, smaller retail traders are increasingly active, adding more complexity to potential price movements.
BTC sentiment dropped sharply to 24 points, shifting from neutral to extreme fear, reflecting the cautious mood across the crypto space. Current BTC volatility stands at a six-month high of 1.93%, making price swings more pronounced. Short-term upside moves are still possible, particularly after the options expiry, as BTC seeks a new range.
