The cryptocurrency market could experience a major upheaval as investors brace for the expiry of over $12 billion worth of Bitcoin options on Friday.
What happened: According to leading cryptocurrency derivatives exchange Deribit, Bitcoin options contracts, with about $12.14 billion in notional value, are set to expire at 4:00 a.m. ET.
This expiry accounted for 43% of the total Open Interest for BTC options, valued at around $27.98 billion.
Options are derivatives that give the contract buyer the right, but not the obligation, to buy or sell the underlying asset at a predetermined price and date. A call option gives the purchaser the right to buy an asset, while a put option allows them to sell assets at an agreed-upon price.
As of this writing, the put/call ratio was 0.49, indicating a bullish sentiment as more traders were betting on price …
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