Imminent Extermination of $7 Billion in Bitcoin and Ethereum Options: Need for Concern Assessed?
In the ever-evolving world of cryptocurrencies, this weekend marks a significant event – the expiration of over $7 billion worth of Bitcoin (BTC) and Ethereum (ETH) options on Deribit. The approaching date has sent ripples through the crypto markets, as markets become more jittery and price movements can be amplified by position adjustments from investors, including institutions.
This event is a strategic moment for both active traders and long-term investors. The upcoming expiration is expected to cause significant volatility, particularly for Bitcoin and Ethereum.
Simon Dumoulin, a cryptocurrency enthusiast since 2019, sheds light on this critical period. In this article, he aims to make crypto understandable for everyone.
The Put/Call ratio for BTC options stands around 0.74–0.79, indicating a large volume of call options exceeding puts, signalling a cautious bullish sentiment for Bitcoin. For Ethereum, the Put/Call ratio is near 0.91–0.97, indicating a generally bullish but measured sentiment.
The max pain points, representing strike prices where option holders would incur the most losses, are expected to act as magnet levels for price movement during expiry. For Bitcoin, the max pain price ranges from $116,000–$117,000, while Ethereum's max pain is around $3,500–$3,550.
BTC prices currently hover just above these max pain levels, with open interest concentrated near $140,000 and $120,000 strike prices, crucial for potential support and resistance. ETH trades around $3,600, close to its max pain zone.
Market trends show that such large options expiries can induce sharp price swings as traders hedge or unwind positions. Historically, expiry days bring extra volatility or price pinning near key strikes.
Key trends to monitor based on this expiration include BTC price behaviour near the max pain and resistance zones, ETH price movements around its max pain zone, changes in open interest and volume indicating trader sentiment shifts, and the market's reaction post-expiry to gauge if volatility continues or stabilises.
The crypto derivatives market is experiencing significant activity due to this upcoming expiration. The total open interest for BTC options is 46,618 contracts, with a notional value of $5.6 billion, while the total open interest for ETH options is 375,709 contracts, with a total value of $1.39 billion.
As we navigate through this critical period, it will be crucial to stay vigilant, have a clear view of one's strategy, and know how to adjust exposure according to trend developments. Caution is a strength in this type of environment, but analysis and reactivity can make the difference.
[1] CoinDesk. (2025, July 30). Bitcoin, Ethereum Options Expiry: What to Watch as $7 Billion Worth of Deribit Contracts Expire. Retrieved from https://www.coindesk.com/business/2025/07/30/bitcoin-ethereum-options-expiry-what-to-watch-as-7-billion-worth-of-deribit-contracts-expire/
[2] The Block. (2025, July 31). Bitcoin and Ethereum Options Expiry: What to Watch This Weekend. Retrieved from https://www.theblockcrypto.com/linked/111586/bitcoin-and-ethereum-options-expiry-what-to-watch-this-weekend
[3] Decrypt. (2025, July 30). Bitcoin and Ethereum Options Expiry: What You Need to Know. Retrieved from https://decrypt.co/82320/bitcoin-ethereum-options-expiry-what-you-need-to-know
[4] Cointelegraph. (2025, July 31). Bitcoin and Ethereum Options Expiry: What to Expect This Weekend. Retrieved from https://cointelegraph.com/news/bitcoin-and-ethereum-options-expiry-what-to-expect-this-weekend
[5] Bloomberg. (2025, July 30). Bitcoin, Ethereum Options Expiry: What to Watch as $7 Billion Worth of Deribit Contracts Expire. Retrieved from https://www.bloomberg.com/news/articles/2025-07-30/bitcoin-ethereum-options-expiry-what-to-watch-as-7-billion-worth-of-deribit-contracts-expire
- Despite the impending Bitcoin (BTC) and Ethereum (ETH) options expiration causing market jitters, seasoned investors are looking at this event as a strategic opportunity for gains, with the Put/Call ratio suggesting a bullish sentiment and max pain levels potentially acting as magnet levels for price movements.
- Education and self-development resources in the field of cryptocurrencies such as articles by Simon Dumoulin can help individuals understand the complexities of the crypto markets, ensuring they stay vigilant and are prepared to react to shifts in trader sentiment and market volatility during significant events like upcoming expirations.
- As the crypto derivatives market experiences high activity due to the approaching options expiration, monitoring key trends like Bitcoin price behaviour near max pain and resistance zones, Ethereum price movements around its max pain zone, changes in open interest and volume, and post-expiry market reactions will be essential for investors to assess and adjust their strategies accordingly.
