With over $15 billion in Bitcoin and Ethereum options scheduled to expire, cryptocurrencycurrency options exchange Deribit is preparing for a historic week. This is expected to be one of its greatest options contract expirations.
Out of $26.3 billion in total open interest, $9.5 billion is related to Bitcoin options, and out of $13.2 billion, $5.7 billion is related to Ethereum options. These amounts represent 40% and 43% of the total OI, respectively.
Recent price increases in both cryptocurrencycurrencies are thought to be the cause of this increase, since they have increased in-the-money (ITM) expiries and lessened the impact of declining maximum pain levels.
Deribit observes a contango in the implied volatility (IV) levels for both Bitcoin and Ethereum, with current IV levels at 63% and 67%, respectively, based on market volatility analysis. Further along the curve, the platform predicts healthy levels of about 80%, reflecting expectations of generally stable pricing until expiration.
Furthermore, the $1.9 billion in outstanding futures contracts have an estimated $695 million coming up for expiration, making this the cryptocurrency market’s greatest open interest (OI) in dated futures.
