Bitcoin is heading into a potentially volatile Friday as a $6.44 billion options expiry approaches, following the cryptocurrency’s rapid climb from roughly $62,000 to $80,000.
Around 81,700 Bitcoin options contracts are scheduled to expire on Deribit at 08:00 UTC Friday, according to Deribit Metrics. The contracts represent approximately $6.44 billion in notional value, with each contract equivalent to 1 BTC.
The expiry consists of 44,639 calls and 37,061 puts, producing a put-to-call ratio of 0.83. The heavier concentration of calls suggests traders are positioned relatively bullishly.
The largest call positions are concentrated at the $75,000 and $80,000 strikes. Open interest at the $75,000 strike represents about $236 million in notional value, while the $80,000 strike accounts for roughly $157 million.
Why the $6.4B Expiry Could Matter
Bitcoin options allow traders to speculate on or hedge against price movements without directly buying or selling BTC. A call gives the holder the right to buy Bitcoin at a predetermined price, while a put gives the holder the right to sell it.
Traders pay a premium to purchase these contracts and can use them either to protect existing positions from volatility or to seek profits from anticipated price moves.
Deribit Chief Risk Officer Shaun Fernando said the upcoming expiry deserves close attention. Nearly 20% of Bitcoin’s open interest on Deribit is set to expire, while several important derivatives indicators have shifted alongside the recent rally.
Bitcoin’s volatility term structure has moved from backwardation into contango, the DVOL index has risen by about 30% on a relative basis and the call-put skew has shifted from negative to positive within the past week.
The sharp rally has also pushed a large number of call options into the money, increasing the exposure that market makers need to hedge.
Bitcoin’s move from approximately $62,000 to $80,000 in one week marked one of its biggest weekly advances in recent years. Calls with strike prices below $80,000 are now profitable based on the current spot price.
Market Makers Could Amplify the Move
More than $500 million in Bitcoin options notional value is positioned within 5% of the current BTC price, according to Fernando. That concentration could increase gamma hedging activity as Friday’s expiration approaches.
Market makers manage their options exposure by buying or selling Bitcoin as changes in the underlying price affect their positions. When large amounts of open interest are concentrated near particular strikes, even relatively small price movements can require significant adjustments to those hedges.
Such activity can sometimes create a “pinning” effect, with Bitcoin gravitating toward a strike where substantial open interest is concentrated.
The $80,000 level could therefore become a key area for BTC heading into settlement. If Bitcoin remains close to that price, hedging flows could help keep the market contained. But a strong move through a major strike could force dealers to adjust positions more aggressively, potentially accelerating the move.
With $6.44 billion in contracts expiring after an unusually strong weekly rally, Bitcoin traders could face elevated intraday volatility before the options settle.
