As October 31st approaches, cryptocurrency markets could experience dramatic volatility due to the expiration of approximately $17 billion worth of options on Deribit for both Bitcoin (BTC) and Ether (ETH). This event occurs concurrent with both U.S. Federal Reserve’s policy meeting as well as major technology company earnings reports that may impact market dynamics.

At expiry, options involving 72,716 BTC call contracts and 54,945 BTC put contracts are set to reach an approximate notional value of $14.4 billion; Ether options account for another $2.6 billion in notional value. A significant portion of these options are out-of-the-money (OTM), signalling an expectation of substantial price movements in their underlying assets; “max pain” levels–prices at which most options expire worthless–are approximately 114,000 for BTC and $4110 respectively according to CoinDesk data.
At present, Bitcoin is trading near its maximum pain threshold (i.e. $113,140), suggesting market makers could engage in hedging activities to adjust prices with these levels as the expiry date approaches. Ether also is hovering close to its maximum pain threshold indicating potential price adjustments.

This options expiry is timed with the Federal Reserve’s anticipated interest rate decision and markets have priced in an expected 25 basis point rate cut, which could weaken the U.S. dollar and boost risk assets like cryptocurrency. Furthermore, earnings reports from major tech players like Apple and Microsoft could further shape investor sentiment and market direction.
CoinDesk
Ahead of these events, decentralized exchanges (DEXs) have seen increased trading volume on decentralized exchanges (DEXs). One notable trader reportedly earned over $17 Million through leveraged long positions on Bitcoin and Ether during periods of increased volatility – this spike highlights how institutional-grade infrastructure is helping foster an engaging trading environment in crypto markets.
Market participants should remain wary as options expiry dates approach; significant events could cause volatility to rise and spark price changes for both Bitcoin and Ether.