The expiry date of Bitcoin options contracts is widely regarded as a volatile event for the flagship cryptocurrency because, as the expiry nears, holders adjust their contracts. Traders who are in profit may also decide to receive the payout and dump the cryptocurrency.
Such events have been known to cause large fluctuations in Bitcoin’s value. Typically, the impact of a contract on BTC price becomes more apparent roughly one or two days before expiry. Crypto derivatives trading has soared this year as more traders and institutional investors look for added Bitcoin exposure. Last week, crypto derivatives platform Deribit began offering Bitcoin futures with a $100,000 strike price expiring on Sept. 24, 2021. In other words, Bitcoin enthusiasts who think the cryptocurrency will reach a six-figure moonshot can now take that bet in the futures market.
Roughly $2.3 billion worth of Bitcoin futures are set to expire on Christmas day, setting the stage for a volatile week in the cryptocurrency market.