Volatility Looms as $18 Billion Options Expiry Hits Cryptocurrency Market
The cryptocurrency market is bracing for Friday's massive $18 billion options expiry, which could bring extra volatility to Bitcoin, Ethereum, and XRP. According to Deribit CEO Luuk Strijers, roughly $15.9 billion in Bitcoin options and $2.1 billion in Ethereum options expire on Friday at 8:00 UTC.
This event will wipe out 37% of Deribit's entire outstanding BTC open interest in one shot, with positioning heavily skewed bullish due to a put/call ratio of 0.69. The maximum pain for Bitcoin sits at $75,000, well below the current spot price near $85,500.
Deribit Chief Commercial Officer Jean-David Péquignot notes that open interest concentrates around the $85,000 to $100,000 call strikes, while defensive puts anchor lower at $60,000, $70,000, and $75,000, creating a multi-layered support floor beneath the market.
Strijers also explained that dealer hedging helped fuel Bitcoin's recent run from $80,000 to $87,000. However, once Friday's settlement clears this flow, the pinning effect fades, volatility can pick back up, and the trading range resets.