A record-sized option contract will expire tomorrow in the cryptocurrency market.
The last quarter of the year on December 29 maturity of last options will be full. On derivatives exchange Deribit $7.7 billion worth of Bitcoin (BTC) at 11:00 UTC on Friday; $3.5 billion Ethereum (ETH) option It is expected to expire.
Luuk Strijers, COO of Deribit, “Totalling over $11 billion, this would be the largest expiration ever on Deribit, with almost $5 billion of it expiring in-the-money, which would be the largest ever, and could result in above-normal hedge buying and trading activity.” .” said.
Option contract is a contract made between two parties and gives the buyer a predetermined option up to a certain maturity in return for a certain amount. strike price via cryptocurrency buy or sell recognizes the right. Call options, strike price below market price If it remains; If put options strike price above market price in case in-the-money ends.
According to Strijers’ statements, many investors closed their contracts moving from maturity dates in December to maturity dates in January started. Strijers, “Once maturities expire, all eyes will turn to the upcoming ETF decision.” said.
The US Securities and Exchange Commission (SEC) will make a final decision on January 10 regarding the joint ETF application filed by ARK and 21Shares.
Data in option contracts indicate that the max pain point is 33,000; for Ethereum at $1,900 shows that it is. However, analysts do not think this is a cause for concern.