Options Expiry Could Lead To Short-Term Volatility For Bitcoin

An upcoming options expiry worth $4.2 billion U.S. could lead to near-term volatility in the price of %Bitcoin (CRYPTO: $BTC ), say analysts.

Current Bitcoin options contracts are set to expire on Oct. 25.

An option allows the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price within a certain timeframe.

The upcoming options expiry could cause some market volatility in coming days as holders of profitable options look to close their bets and sell some or all of their Bitcoin holdings.

Bitcoin’s “max pain” level is currently $64,000 U.S. That’s the point where most options contracts would expire worthless, causing the most loss to option buyers and maximizing profits for options writers.

The crypto community remains divided over the impact of options expiries on Bitcoin’s price movements.

Many people argue that the options market for Bitcoin is too small to significantly impact the spot price of the largest %Cryptocurrency. Others see options expiries as disruptive events.

Bitcoin is currently trading at $66,500 U.S., having risen 50% so far in 2024.

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