Deribit Warns of Volatility as $9.5B $BTC and $ETH Options Expire Tomorrow

Deribit, a renowned crypto derivatives exchange, has released the declaration of a notable options expiry scheduled for January 30, at 8:00 UTC. Specifically, this development is set to settle a staggering $9.5B in terms of value across Ethereum ($ETH) and Bitcoin ($BTC) contracts. As per Deribit’s official X announcement, the event could substantially increase the key levels, specifically closer to the pain points of both the top cryptocurrencies. In this respect, the development reportedly emerges as one of the biggest monthly expiries.

Deribit Announces $9.5B Options Expiry Increasing Volatility Around Peak Pain Levels

Deribit’s announcement for $9.5B crypto options expiry is poised to position $ETH and $BTC for noteworthy volatility surrounding critical pain levels. At the same time, the traders are substantially hedging against downside risks despite the overall bullish positioning. The announcement reveals that Bitcoin ($BTC) options occupy $8.27B notional of the overall amount.

Additionally, the put/call ratio stands at 0.54, with max pain price sitting at $90,000. Apart from that, Ethereum ($ETH) options account for $1.27B notional of the aforementioned amount. Simultaneously, its put/call ratio is 0.74 while max pain standing at $3,100. Max pain underscores the strike price at which maximum options would hit expiry worthless. This often serves as a “price magnet” because of dealer hedging operations that can attract spot prices leading toward settlement.

Options Expiry May Shape Wider Market Sentiment in Either Direction for February

According to Deribit, the present price trajectory is mainly led by positioning models in comparison with external news. In this respect, the futures open interest (OI) is stable, while the options are dominating the exposure. Keeping this in view, BlockScholes and other market observers have flagged a potential spike in provisional implied volatility because of macro tensions, although longer-dated options are comparatively unchanged. Overall, as Deribit commands more than eighty percent of worldwide crypto options activity, the event could shape market sentiment for February, likely highlighting a bounce back if bullish inclination persists.