Record Bitcoin Options Expiries Fuel Market Volatility
On August 29, Deribit saw a massive Bitcoin options expiry totaling $11.57 billion, with a put/call ratio of 0.78 and a max pain level at $115,000, alongside a $3.13 billion Ethereum options expiry (put/call 0.77, max pain $3,800), indicating slight bullish sentiment. Looking ahead to September 5 at 08:00 UTC, another record Bitcoin options expiry of $3.36 billion (put/call ratio 1.42, max pain $112,000) is poised to exert downward pressure on BTC price, alongside a $1.28 billion Ethereum expiry showing neutral-to-bullish sentiment (put/call ratio 0.77, max pain $4,400). Large options expiries often draw prices toward their max pain levels and amplify intraday swings, fueling market volatility. Crypto traders should track open interest and hedging flows, follow macroeconomic news, and set stop-loss orders to navigate heightened volatility and capitalize on trading opportunities.
Bearish
Large Bitcoin options expiries can drive significant price swings as market makers execute hedging strategies, pushing BTC toward max pain levels. The first expiry on August 29 showed a slight bullish skew with a put/call ratio below 1, but the upcoming September 5 expiry’s high put/call ratio of 1.42 signals potential downward pressure. In the short term, traders may see increased volatility and a pullback towards the $112,000 max pain level. Over the long term, regular large expiries reflect the market’s maturity and could lead to more predictable price discovery. However, the pronounced bearish bias ahead of the September 5 event suggests a cautious outlook, warranting strict risk management.