This Friday, Bitcoin Options Worth 20 Trillion Won Expire... Largest in History

This Friday, the largest-ever Bitcoin (BTC) options contracts are set to expire on the derivatives exchange Deribit.

According to the cryptocurrency-focused media outlet CoinDesk on the 24th, a total of 146,000 Bitcoin options contracts will expire on Deribit at 3 PM Korean time on the 27th. This accounts for 44% of Deribit's total open interest, amounting to approximately $14 billion (20 trillion won).

Additionally, Ethereum (ETH) options contracts worth about $3.8 billion are also set to expire on the same day.

Meanwhile, there are observations that the expiration of these options contracts could trigger volatility in the market. This is because $4 billion worth of Bitcoin options expiring on Friday are 'in the money.' 'In the money' refers to a state where the option's strike price is profitable compared to the current price of the underlying asset. For example, a 'call option' price being lower than the current market price of Bitcoin is 'in the money.'

CoinDesk evaluated that "the expiration of 'in the money' options contracts can bring significant profits to investors. The funds may roll over to other products, potentially causing market volatility."

Meanwhile, as of 4:25 PM today, Bitcoin is trading at $94,035, down 1.04% from the previous day according to CoinMarketCap.