$18 Billion in Bitcoin Options Set to Expire—Here’s What to Expect

Analysts called the expiration date for today’s $18 billion Bitcoin option’s “record setting” concept, and added that anything that happens from it could be delayed.

It may welcome news for crypto investors after rough trading week has dropped prices all over the board Bitcoin During September, they have already made a small profit in the rest of the red crypto market.

“The historic precedent suggests that a large amount of expiration dates will suppress volatility leading to cutoffs, and lead to a more clearer directional movement in the next 24-72 hours,” Bitfinex analysts said. Decryption.

The expected volatility left users at Myriad. Decryption Parent company Dastan believes Bitcoin will look reder than green candles over the weekend. This means that the prices on your daily charts will be lower. The bear has stripped the bull narrowly at 51% to 49% at the time of writing.

An option is a derivative agreement that gives rights to traders who offer the right to buy and sell Bitcoin at a price set before a certain date and strike price. A bet on a higher price and put will still result in a lower price. This is a common way for traders to hedge risk.

Most crypto options expire on a fixed monthly cycle, usually the last Friday of the month. And as the conceptual value of options grows to hundreds of billions of dollars, just like this month, it will allow traders to generate some volatility in the market as they are rushing to mitigate risk.

Looking forward to October, Bitfinex analysts said there are still many risks in the options market. At the time of writing, Crypto Data Aggregator Coinglas estimates it has $78.9 billion worth of open interest in Bitcoin contracts.

Deribit, the largest Bitcoin options trading platform and recently acquired by Coinbase, already has more than $8 billion in open interest due to expire on October 31st.

“The open interest in the total BTC options remains at a very high level,” Bitfinex analyst said. Decryption. “In the October call, there was a significant accumulation concentrated in corridors ranging from $115,000 to $125,000.”

Analysts also noted that the Bitcoin options market showed signs of “long convex.” In other words, traders who purchase these long contracts can earn a great deal if BTC experiences a sharp gathering.

However, dealers who sell these options will be placed in a way that could proactively force hedging if it occurs. This will allow dealers to buy as BTC rises and sells.

If that happens, it may “suppress upward movement until flow or spot-driven factors destroy the structure.”