Massive $14.6B Bitcoin and Ether Options Expiry Shows Bias for Bitcoin Protection
A massive \$14.6 billion crypto options expiry is scheduled for this Friday, with the spotlight firmly on Bitcoin (BTC) and Ether (ETH), the two leading digital assets. This expiry is one of the largest seen in recent months, and it is expected to play a crucial role in shaping short-term market sentiment. Traders have positioned heavily in Bitcoin downside protection, signaling concerns over potential price weakness. Put options dominate BTC’s positioning, showing that many participants are hedging against a possible drop.
On the other hand, Ether’s options market appears more balanced, with traders split between calls and puts, reflecting a more neutral outlook. Such a large expiry event often triggers heightened volatility as market makers adjust exposure and contracts are settled. With Bitcoin hovering near key support zones and Ether holding steady, the outcome of this expiry could influence near-term momentum across the broader crypto market.
At a glance
$14.6B in bitcoin and ether options expire Friday on Deribit.
Bias toward BTC puts shows strong demand for downside protection; ETH is more neutral.
Max pain sits near $116,000 for BTC and $3,800 for ETH—levels many will watch into expiry.
Why this expiry matters
The latest quarterly roll is one of 2025’s biggest, and bitcoin put options demand ahead of Deribit expiry is setting the tone. Deribit accounting for about 80% of global crypto options flow will settle tens of thousands of contracts as traders navigate macro signals and crypto’s own volatility cycle.
The setup: size, flow, and distribution
As of publication, 56,452 BTC calls and 48,961 BTC puts were queued for settlement, representing $11.62B in notional open interest (each contract equals 1 BTC or 1 ETH on Deribit). On the ether side, 393,534 calls outnumber 291,128 puts, totaling $3.03B in notional.
That skew translates into bitcoin put options demand ahead of Deribit expiry being most visible around near-the-money strikes. Put interest concentrates between $108K–$112K, broadly bracketing spot (~$110K at press time). Call interest clusters $120K and above, signaling upside hopes but with a preference to hedge first, chase later.
BTC vs. ETH: different hedging postures
BTC traders are paying up for protection with puts near spot, emphasizing the market’s conviction (or caution) into the roll. ETH, by contrast, shows a more balanced stance: heavy call open interest around $3,800, $4,000, and $5,000, with puts stacked at $4,000, $3,700, and $2,200. The divergence underscores how bitcoin put options demand ahead of Deribit expiry can coexist with more two-way risk in ETH.
Max pain: focal levels or trading folklore?
“Max pain”—the strike where most options expire worthless sits near $116,000 for BTC and $3,800 for ETH. Since 2021, many have argued prices gravitate toward these levels into settlement, though it’s still debated. Whether signal or superstition, bitcoin put options demand ahead of Deribit expiry suggests traders are positioning for a protect-first outcome if volatility kicks back up.
Macro backdrop and messaging
Deribit noted on X that BTC flows point to persistent downside hedging, while ETH looks more neutral—adding that post-Jackson Hole guidance from Chair Powell could influence September’s market tone. In that context, bitcoin put options demand ahead of Deribit expiry reflects a simple playbook: keep protection on while leaving room to participate in upside via calls or outright spot.
Key levels to watch
BTC puts: Heavy $108K–$112K; watch reactions if spot drifts into this zone.
BTC calls: Interest $120K+—a clean marker for breakout sentiment.
ETH calls: $3.8K–$5K; ETH puts: $4K, $3.7K, $2.2K.
Max pain: BTC $116K, ETH $3.8K handy reference into the close.
These touchpoints embody bitcoin put options demand ahead of Deribit expiry as traders triangulate hedges, gamma flows, and post-event direction.
Bottom line
Quarterly expiries often act as a reset point for market positioning and volatility, and this week is no different. Ahead of the major Deribit expiry, demand for Bitcoin put options has been running hot, signaling strong caution from traders looking to hedge against near-term downside risks. This shows a clear bias toward protecting spot levels as uncertainty builds.
In contrast, Ether’s positioning looks more balanced, with neither side showing extreme conviction. The market tone suggests that traders are choosing to defend against potential drops in BTC while pressing the upside more selectively. By Friday’s close, it will become clear whether these hedges were premature or perfectly timed.
FAQs
1) What does “bitcoin put options demand ahead of Deribit expiry” actually mean?
A . It means traders are buying BTC puts into Friday’s settlement, prioritizing downside protection as large notional open interest rolls off.
2) What are “max pain” levels and why do they matter?
A . They’re strikes where most options would expire worthless; some believe prices can gravitate toward them into expiry, though it’s not a rule and remains debated.
3) Why is BTC skewed to puts while ETH looks balanced?
A . BTC often leads market sentiment; traders hedge BTC first, while ETH’s two-way interest reflects more mixed views on near-term direction.
4) How could this expiry influence next week’s trade?
A . Unwinds can reduce pinned ranges or spark volatility if key strikes break, potentially setting the tone for early September flows.