$17 BILLION WORTH OF BITCOIN AND ETHEREUM OPTIONS SET TO EXPIRE ON FRIDAY
Today, Friday, marks the expiration of $17 billion worth of Bitcoin and Ethereum options, preparing the crypto market for potential volatility.
Crypto markets are on alert for a potential wave of volatility this week. On Friday, October 31, more than $17 billion worth of Bitcoin and Ethereum options will expire on the leading crypto derivatives exchange, Deribit.
For Bitcoin (BTC), about 72,716 call options and 54,945 put options, valued at roughly $14.4 billion, are set to expire. Meanwhile, Ethereum (ETH) options worth $2.6 billion will also close the same day—an event that could trigger sharp price swings across the crypto market.
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As call options outweigh put options, many traders are betting on a short-term Bitcoin (BTC) price increase ahead of Friday’s expiry. The maximum pain point—the price level where most options expire worthless—currently sits around $114,000. This level is crucial, as market makers often hedge their positions in ways that can influence Bitcoin’s price movement toward this zone, especially as the expiry date approaches.
Traders appear to be taking a more speculative approach ahead of the expiry. Data shows that about 82.5% of all options contracts are out-of-the-money, suggesting that most traders are not hedging their positions. Instead, they’re making directional bets on where Bitcoin and Ethereum prices could head next.
The upcoming $17 billion Bitcoin and Ethereum options expiry is expected to inject fresh volatility into the crypto market. Such expiries often lead to sudden price swings as traders unwind their positions, settle contracts, and rebalance portfolios. When large amounts of options remain out of the money, as in this case, the impact on spot prices can be even more pronounced.
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These market adjustments occur because traders and market makers typically hedge their exposure leading up to expiry. As those hedges are unwound, it can cause sharp price fluctuations—sometimes pulling prices closer to the “max pain” level, where most contracts expire worthless.
Adding to the uncertainty, this expiry coincides with several major macroeconomic events, including the U.S. Federal Reserve’s FOMC meeting on interest rates and a wave of big-tech earnings reports. The overlap of these events could amplify market reactions, creating a perfect setup for short-term volatility in both Bitcoin and Ethereum prices as traders respond to changing market sentiment.
