The cryptocurrency derivatives market will witness its annual highlight on Friday (August 29), with data showing a large number of Bitcoin and Ethereum options contracts expiring on the Deribit platform that day, with a total notional value exceeding $14.6 billion, expected to be the most influential options settlement event of the year.
According to Deribit Metrics data, the current unsettled Bitcoin options include: 56,452 call options (bullish) and 48,961 put options (bearish), with a total open interest of $11.62 billion.
Further observation reveals that Bitcoin put options are primarily concentrated in the range of '$108,000 to $112,000', closely following the current Bitcoin price of around $110,000. In contrast, bullish call options are mainly distributed above $120,000, indicating that while the market has upward expectations, short-term sentiment remains defensive.
On the other hand, Ethereum call options awaiting settlement reach 393,534 contracts, significantly higher than the put options at 291,128 contracts, with a total open interest of approximately $3.03 billion. Notably, call options are concentrated at strike prices of $3,800, $4,000, and $5,000.
Deribit stated via X: 'The upcoming expiration structure of Bitcoin options indicates that investors continue to seek downside protection, while Ethereum remains relatively neutral. Combined with the policy signals released by Powell at the Jackson Hole Global Central Bank Annual Meeting, this settlement is likely to set the tone for the September market trend.'
The market continues to pay attention to the so-called 'maximum pain price'—the strike price where the price of the asset could converge, causing the greatest loss to option holders before expiration. Although this theory remains controversial, it still serves as a basis for some traders' strategies.
Currently, the maximum pain price for Bitcoin is at $116,000, while for Ethereum it is at $3,800.
"Affecting the September Market! $14.6 billion Bitcoin and Ethereum options will expire" was first published on (Blockchain Insider).
