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In a development that could lead to upward volatility in asset markets, both Bitcoin (BTC) and Ethereum (ETH) have $15 billion worth of options expiring on Friday, March 29th. In fact, options exchange Deribit plans to sell $9.5 billion worth of Bitcoin options. Alternatively, it plans to settle $5.7 billion worth of Ether options.
Experts say the quarterly option expirations on BTC and ETH could be set up to bring bullish price action to the market. Additionally, these options are officially set to expire at 08:00 UTC.
Also read: Cryptocurrency: 3 coins that could reach ATH after Bitcoin halving
$15 billion in BTC and ETH options expire
The digital asset market has been one of the most interesting markets in the financial sector so far in 2024. Bitcoin skyrocketed in price on the back of spot ETF approval in January. Ultimately, assets hit an all-time high of $73,000 this month.
Meanwhile, Ethereum has emerged as a top candidate to be the next asset likely to receive spot ETF approval in the US. However, it is reported to be the subject of a U.S. Securities and Exchange Commission (SEC) lawsuit challenging the safety of its assets.
Also read: Spot Ethereum ETF Fidelity File with Staking
These developments further solidify our two assets as leaders in this field. They will now face another interesting reality, as both Bitcoin and Ethereum have $15 billion in options expiring today.
Specifically, Deribit, the world’s leading cryptocurrency options exchange, points to quarterly settlement of options contracts. In the case of Bitcoin, $9.5 billion will expire. This figure is 62% of the total open interest. The remainder is made up of Ethereum, with $5.7 billion worth of option contracts expiring.
Luuk Strjers, chief commercial officer at Deribit, discussed the options in an interview with Coindesk. In particular, he noted that most options expire in the money. After that, upward pressure may spill over into the market again.
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