The expiry of Bitcoin options always generates some buzz in the crypto market. Knowing what time Bitcoin options expire can be useful for traders to plan their trades.
Bitcoin options expire today, however there is no fixed time. It depends on the type of options. For example, Deribit‘s options expired at 8:30 AM UTC today.
To expire in a 30 minutes 08:00 UTC
🔹 99k $BTC options, USD 5.1 B notional
🔹 BTC March Futures USD 240m
🔸 608k $ETH options, USD 1 B notional
🔸 ETH March Futures USD 51m
Total USD 6.4 billion
— Deribit (@DeribitExchange) March 26, 2021
Deribit takes the lion’s share of the action because, as the tweet shows, it has expired options worth $5.1 billion.
What time do Bitcoin options expire on the CME
However, the expiry of options on the CME is also expected The time is set at 4 PM UTC.
These are two totally different markets, as CME Bitcoin options are usually aimed at institutional investors, unlike Deribit’s options, which are open to a wider audience.
In total there are 118,000 Bitcoin contracts expiring with a value of over $6 billion.
Why expiry on Bitcoin options can create tensions
These figures can undoubtedly bring shocks to the market. In fact, options have a dual purpose for traders:
- to protect from risk;
- to speculate.
Traders usually revise their strategies, either upwards or downwards, after options expire. Now the next date to mark on the calendar is June 2021, when the quarterly options expire whose contracts will be renewed shortly.
Meanwhile, after yesterday’s volatility, the market seems to be reacting well to the expiration of options. Bitcoin has returned to the upside today and currently sits at $53,500, after having come close to touching the psychological threshold of $50,000 in the last 24 hours. It will be important to see the evolution of the weekend to understand if BTC will have the strength to return to $57,000 (Monday’s opening values) or if a moment of weakness has begun.