Over $2.1 billion in Bitcoin and Ethereum options are set to expire today, a development that traders warn could trigger significant volatility in crypto markets. The expiry comes amid rising geopolitical tensions and a broader risk-off mood following recent economic data.
The options expiry is compounded by reports that former President Trump is considering a “final blow” to Iran after rejecting Tehran’s offer to end hostilities. This geopolitical uncertainty has added an extra layer of caution, with analysts noting that large derivatives expirations often amplify price swings.
According to CoinGape, the wider crypto market has already seen profit-taking in the wake of the US Personal Consumption Expenditures (PCE) inflation reading. The data, which showed persistent price pressures, prompted some investors to reduce exposure to risk assets like cryptocurrencies.
Traders are closely watching whether the expiry will lead to a sharp selloff or if buying pressure can absorb the contracts. The outcome could set the tone for short-term trading, with options market dynamics sometimes acting as a self-fulfilling prophecy.
Some analysts caution that the impact may be overstated, as the notional value of $2.1 billion represents a fraction of daily trading volumes. However, the combination with macro headwinds keeps the market on edge.