Crypto prices are expected to fluctuate next week, with approximately $3 billion worth of Bitcoin options and $1.8 billion worth of Ethereum options expiring on September 29. This date is particularly notable because it is the end of both the month and the quarter.
Volatility May Increase in Bitcoin as Options Worth $3 Billion Expire
Deribit Chief Commercial Officer Luuk Strijers noted the similarities between the cryptocurrency market and traditional finance, noting that options are approaching their expiration dates, especially quarterly expirations, which “can result in large transaction volumes and fluctuations.”
“The actions of market makers can lead to increased volatility in the market, especially in the period leading up to options expiration,” Strijers said. “Market makers adjust their hedges according to changes in the price of the underlying asset.”
While Strijers stated that the impact of monthly and quarterly expirations in September on the price will be greater than daily or weekly expirations, he said that current conditions may not lead to particularly strong market movements.
The Fed's last decision was to keep interest rates constant. It seems more possible for BTC, which has relieved this pressure, to show an upward performance in the new week.
*This is not investment advice.