Crypto traders are bracing for a nearly $5 billion Bitcoin and Ether options expiry on Friday, September 29th. This expiry is one of the largest of the year, and could have a significant impact on the prices of both cryptocurrencies.
What is an options expiry?
An options expiry is the date on which an options contract ceases to be valid. If an options contract is not exercised by the expiry date, it expires worthless.
Why is this expiry important?
The size of the upcoming expiry means that there is a lot of money at stake. If a large number of options contracts expire in the money (i.e., if the underlying asset price is above the strike price), it could lead to a significant sell-off in the market. Conversely, if a large number of options contracts expire out of the money (i.e., if the underlying asset price is below the strike price), it could lead to a short squeeze.
How will this expiry impact the prices of Bitcoin and Ether?
The impact of the expiry on the prices of Bitcoin and Ether will depend on a number of factors, including the number of options contracts that expire in the money, the strike prices of those contracts, and the overall sentiment in the market.
If a large number of options contracts expire in the money, it could lead to a sell-off in the market, as traders who are short options contracts will be forced to buy the underlying asset in order to cover their positions. This could drive up the price of the asset.
Conversely, if a large number of options contracts expire out of the money, it could lead to a short squeeze. This is because traders who are short options contracts will be able to close their positions without having to buy the underlying asset. This could drive down the price of the asset.
The upcoming Bitcoin and Ether options expiry is a significant event that could have a major impact on the prices of both cryptocurrencies. Traders should carefully consider the risks and rewards before trading options contracts, especially during a large expiry.
