As the cryptocurrency market approaches the end of the year, the largest options expiry ever seen on Deribit is imminent. On Friday, December 29, at 08:00 UTC, a total of 146,000 Bitcoin 
$98,166 options contracts will expire, valued at approximately 14 billion dollars. Additionally, Ethereum 
$3,478 will see options contracts expiring worth 3.84 billion dollars.
Major Position Shifts Expected in BTC Options
With this expiry, 44% of the total open positions in Bitcoin options will close. Deribit CEO Luuk Strijers noted that the bullish trend in the market has stalled, with leveraged long positions dominating. “If a significant downward movement occurs, the risk level may increase,” stated Strijers.
According to GSR portfolio manager Simranjeet Singh, most of these positions will roll over into January and March expirations. A BTC option valued at 4 billion dollars will expire “in the money,” potentially increasing profit opportunities for buyers. Singh also mentioned that he expects high market volatility.
The put-call open interest ratio was recorded at 0.69, indicating a greater presence of call options in the market. The asymmetrical potential for upward movement suggests that the market is focusing more on bullish outcomes.
Increasing Downward Pressure on Ethereum
As Ethereum options approach expiry, the market paints a more negative picture. Block Scholes research analyst Andrew Melville pointed out that ETH’s put-call ratio indicates a significant decline. Melville noted that lower expectations have formed for Ethereum’s native token.
The pricing of ETH call options also presents a less optimistic outlook. “The December positioning on the ETH side appears less optimistic compared to Bitcoin,” Melville added.
As the year draws to a close, market uncertainty is notable for both Bitcoin and Ethereum. Major expiry transactions could lead to significant price fluctuations. Participants should remain cautious of potential risks during this period.
In conclusion, this options expiry will mark a significant juncture in the cryptocurrency market, recorded as one of the critical events determining market direction as the new year approaches.
