Watch Out for Friday in Bitcoin: There is a $5.8 Billion Earthquake! Deribit CEO Warns About Volatility!

The FED's interest rate cut has boosted Bitcoin and altcoins, with BTC rising above $64,000 and Ethereum above $2,600.

While analysts expect a rally from now on, Deribit CEO Luuk Strijers warned against short-term volatility.

Luuk Strijers said that a significant amount of Bitcoin and Ethereum open interest will expire on Friday, which could cause price fluctuations.

Accordingly, 90,000 BTC options worth $5.8 billion and $1.9 billion ETH options are expected to expire on September 27, causing volatility in prices.

Speaking to CoinDesk, Deribit CEO stated that around 20% of expiring Bitcoin options are in the money, saying:

$5.8 billion worth of Bitcoin options are expiring, with about 20% in the money.

This larger maturity is likely to increase market volatility or activity as investors close or roll over their positions.

This can also affect prices and lead to price fluctuations.

Stating that the volatility will be short-term, Luuk Strijers said that he expects an increase with the support from spot Bitcoin ETFs in the coming months.

Citing SEC options tied to BlackRocks Bitcoin ETF (IBIT) as an example, the famous CEO stated that this approval could accelerate institutional adoption and would reflect positively on the price in the coming months.

One of the biggest potential drivers for Bitcoin is options in ETFs. The SEC has approved them, but the OCC and CFTC have not yet approved them and are unlikely to do so this week.

However, the pricing of options expiring in the coming months indicates a bullish outlook.

“The BTC and ETH put-call skew is negative after the September expiration. This is a bullish indicator as calls are relatively more expensive than puts.”

*This is not investment advice.