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The duration of the 14 billion option contract is expiring.
The increasing volatility due to the Iran-Israel war and the ever-changing macroeconomic environment has also closely affected the options market in the crypto world. While option transactions are on the rise, this Friday, over 141,000 Bitcoin option contracts will expire on the Deribit exchange.
The ratio of the sale-oriented ( put ) and purchase-oriented ( call ) contracts to each other has also started to increase, reaching 0.72. This means that although the number of "call" options is greater, the number of "put" options has started to increase recently.
"They are waiting for a buying opportunity at the bottom"
Lin Chen, one of the Asian managers of Deribit, stated that this situation is not caused by an increase in those expecting a decline, but rather that investors are on the lookout for opportunities to buy at the bottom in case Bitcoin falls:
"The increase in sales-oriented contracts is due to the cash collateralized 'put' strategy. Here, traders either sell put options to earn premiums or take positions to accumulate BTC at the bottom."
Nearly 82 thousand of the 141 thousand contracts consist of (81.994) "call" options. According to Deribit data, a large portion of these contracts has already turned profitable. According to Deribit, the main reason for this is the ongoing ETF inflows...
Volatility may increase
The expiration of such a large number of contracts indicates that the market may experience significant movements. These movements could occur particularly within the short period leading up to the closing on Friday.
Published: June 25, 2025 13:35Last Updated: June 25, 2025 13:52