Bitcoin and ether options contracts worth $4.2 billion and $1 billion respectively are set to expire on Friday, potentially leading to short-term market volatility. Notably, over $682 million of BTC options are expected to expire in-the-money, predominantly calls, suggesting bullish sentiment as the market nears the expiry date. The current bitcoin put-to-call open interest ratio is 0.62, favoring calls, which indicates optimism amidst market fluctuations. BTC is trading around $67,000, higher than its max pain level of $64,000, which could imply a dip could occur before expiry due to market pressure. The options market has grown significantly over the past four years but still remains relatively small compared to the spot market; for instance, BTC's open interest is under 1% of its market cap. The SEC's recent approval of options for bitcoin-linked products could further expand this market with institutional involvement anticipated, signaling a potential shift in market dynamics in the future.

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