Bitcoin Options Worth $10.86 Billion Expire
On Deribit, demand for protection is shifting, with puts more expensive than calls after the drop to around $79,300. Another $783 million in Ether options also expires on Friday.
Key Takeaways
- Traders are paying more for Bitcoin puts after the price fell to around $79,300 earlier this week.
- On Friday, $10.86 billion in Bitcoin options expires on Deribit, plus $783 million in Ether options.
- The market is mainly looking for protection against further downside, while calls with strikes from $90,000 to $100,000 are underwater.
Traders are clearly paying more for puts on Bitcoin now that the price fell to around $79,300 (€71,200) earlier this week. That suggests the market is mainly looking for protection against further downside, while $10.86 billion (€9.8 billion) in Bitcoin options expires on Deribit on Friday.
Put Premium Rises
According to Jean-David Pequignot, chief commercial officer at Deribit, BTC's front-end 25-delta skew has shifted sharply toward puts, with more than 10 volatility points above calls. In plain English: puts have become more expensive than calls because traders want to hedge against a drop in the spot price.
Pequignot also said the shorter expirations show a clear skew in implied volatility, with demand for downside protection especially strong. That fits a market where traders are choosing safety over a quick bet on a rebound.
Big Settlement on Deribit
Deribit is the world's largest crypto options exchange by bitcoin and ether volume and open interest. On the platform, one contract represents one BTC or ETH. Along with the Bitcoin options, another $783 million (€703 million) in Ether options expires on Friday.
For Bitcoin, many open positions are in calls with strike prices between $90,000 (€80,800) and $100,000 (€89,800). Those positions are now underwater because the price has not come close to that range for now. Deribit's 30-day implied volatility index, DVOL, is at 36, about five points above the realized volatility of 31 over the same period.
The recent drop below $83,000 also shows how quickly sentiment can turn once the price loses key support.
Why This Matters for Europe
For European crypto followers, this matters because large option expiries often show how professional capital is positioning around key price levels. The focus on $80,000 (€71,900) and the higher demand for puts may also say something about broader sentiment in the crypto market, where protection against sudden moves now clearly matters more than speculation on a quick rise.
