Crypto Options Expiry Looms: $16B at Stake as BTC and ETH Prices Hang in Balance
A significant event is unfolding in the cryptocurrency markets as $16 billion worth of options contracts expire on September 25th. These high-volume expiries fall on the last Friday of both the week and the month, making them particularly notable. Deribit data shows that approximately $14 billion worth of Bitcoin (BTC) options will expire, while Ethereum (ETH) options valued at $2.1 billion will also be settled.
The put/call ratio for BTC options is 0.87, indicating that investors are generally betting on higher returns and expecting an upward trend in the price of Bitcoin. In contrast, the put/call ratio for ETH options is 0.67, suggesting a stronger expectation of price increases for Ethereum. However, analysts emphasize that these metrics alone do not predict the direction of prices after expiry.
According to Greeks.live analysts, 32% of Bitcoin open positions and 40% of Ethereum open positions are expiring due to this three-month expiry. Analysts also highlight recent security incidents, including the $300 million Bitget hack, as a significant short-term risk to the market.