$31 Billion Bitcoin Options Set to Expire on Halloween, Analysts Warn of Volatility

In accordance with CryptoDnes, the Bitcoin derivatives market is approaching a major event with an estimated $31 billion in options contracts set to expire on Halloween. Analysts warn that this expiry could increase market turbulence, especially as the market is still recovering from a sharp flash crash earlier this month. Open interest in Bitcoin options has dropped from $38 billion to $31 billion since the selloff. Deribit, now owned by Coinbase, holds the largest share of expiring contracts at $14 billion, followed by the CME with $13.5 billion. Deribit’s chief commercial officer noted a significant build-up of put and call options around key price levels, signaling potential volatility. Historically, large option expiries have led to muted volatility before the event and sharper swings afterward. Analysts also highlight that leverage in the system remains high, raising concerns about potential forced liquidations if prices fall.