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$23.6 Billion in Bitcoin Options Set to Expire This Friday
Bitcoin Price Faces Potential Volatility Due to Options Expiry
- This Friday, Bitcoin may experience significant price swings with $23.6 billion in options set to expire.
- The expiry is the largest ever seen, surpassing previous years: $6 billion (2021), $2.4 billion (2022), $11 billion (2023), and $19.8 billion (2024).
- Options expiry involves leveraged bets on Bitcoin's price, where calls predict a rise and puts predict a fall. Expired options trigger buying or selling in the spot market.
- The event could lead to increased market volatility as risk offloading occurs from dealer books.
- Retail investors no longer dominate the market; institutional-sized risk is being repriced in real-time, potentially causing significant price movements.
- Low liquidity during the holiday week might amplify the impact, leading to sharp moves even without major news.
- Most of Bitcoin's Open Interest is near major psychological levels, which can cause sideways trading followed by clear directional moves post-expiry.
- The key moment to monitor is after the expiry, as volatility is expected.
