As 2023 comes to a close, significant activity is set to unfold in the cryptocurrency market with the largest options expiry on Deribit, scheduled for December 29 at 08:00 UTC. Approximately 146,000 Bitcoin options contracts, valued at around $14 billion, are set to expire, along with Ethereum options worth $3.84 billion.
What Changes are Anticipated for Bitcoin Options?
This expiry is expected to lead to the closure of 44% of total open positions in Bitcoin options. Deribit’s CEO, Luuk Strijers, highlighted that the market’s bullish momentum has plateaued, with leveraged long positions becoming prevalent. He cautioned that a notable decline could heighten risk factors.
What Is the Outlook for Ethereum Options?
In contrast, Ethereum’s options landscape appears dire. Analyst Andrew Melville from Block Scholes noted a substantial drop in the put-call ratio for ETH, indicating a lack of confidence. He stated that the market sentiment regarding Ethereum’s native token is less favorable compared to Bitcoin.
Valuable insights include:
- BTC options’ significant expiry could yield high volatility.
- 44% of Bitcoin options set to close might shift market dynamics.
- Ethereum’s declining put-call ratio signals bearish sentiment.
As this pivotal expiry approaches, both Bitcoin and Ethereum face considerable uncertainty. Participants in the market are urged to exercise caution as significant fluctuations could arise from these transactions.