Deribit options expiry signals hedging demand for Bitcoin, while Ether sits closer to neutral
A large block of Bitcoin and Ether options on the Deribit platform is set to expire Friday, totaling more than 14.6 billion in notional value and marking one of the heftier expiries of 2025. Traders appear to be leaning toward downside protection for Bitcoin even as Ether positions look comparatively balanced.
Bitcoin hedging activity dominates the expiry profile. There are 56,452 Bitcoin call contracts and 48,961 put contracts scheduled to settle, with notional open interest around 11.62 billion. The overall expiry is expected to roll off roughly 15 billion in notional, making it one of the heaviest months of the year. The open interest skews toward puts, concentrated in the 108,000 to 112,000 strike range—close to Bitcoin’s then-current price near 110,000. This clustering points to demand for protection against deeper downside moves. By contrast, call positions gather at higher strikes of 120,000 and above, implying some lingering hopes for a rebound.
Ether’s picture is more balanced. Call options total 393,534 contracts against 291,128 puts, representing a notional open interest of about 3.03 billion. Investors show more activity at call strikes around 3,800, 4,000 and 5,000, while puts concentrate at 4,000, 3,700 and 2,200. The data suggest a neutral stance for Ether relative to Bitcoin’s more protective posture.
Market context and potential implications
– The difference in sentiment between the two leading assets reflects a broader dynamic: traders appear to be hedging Bitcoin risk more aggressively as the price has faced a pullback, while Ether’s decline has not fully shifted the sentiment into bearish territory.
– The timing of the expiry follows signals from Federal Reserve Chair Jerome Powell at last week’s Jackson Hole gathering, which commentators expect could help frame market tone into September. Powell hinted at the possibility of a rate cut at the Fed’s mid-September meeting, though he did not commit to easing.
– The options activity comes amid a backdrop of volatility and liquidations. Data from Coinglass show around 900 million of leveraged positions liquidated to start the week, with Bitcoin and Ether each sliding more than 1.5% alongside the S&P 500. Ether liquidations reached about 320 million, while Bitcoin liquidations were around 277 million. Smaller cap altcoins also posted losses.
What this could mean for price action
– Bitcoin: The concentration of puts near current levels and the presence of higher strike calls suggest a risk-hedging regime, with potential for near-term downside protection to cap downside moves unless buyers gain traction. If the expiry assets align with those put-heavy levels, there could be a bias toward prices drifting toward the major strike zone around 110,000, though a sudden shift in macro cues or buying interest could interrupt that path.
– Ether: With a more balanced distribution of calls and puts, Ether’s moves around expiry may be more modest, keeping upside and downside risks more evenly balanced in the near term.
Positive angle and takeaways
– The heavy expiry and active hedging activity illustrate a maturing crypto options market where participants routinely deploy risk management strategies rather than chasing one-sided bets. This can contribute to more stable price behavior around key expiry dates.
– The ongoing attention from major market events, including potential Fed policy moves, means traders are aligning hedges with macro signals, which can provide clearer risk metrics for both retail and institutional participants.
Summary
– Bitcoin shows a clear demand for downside protection ahead of Friday’s Deribit expiry, with put-heavy positioning near the spot and a buildup of higher-strike calls.
– Ether’s positioning is comparatively neutral, with robust activity on both call and put sides at several key strike levels.
– The expiry sits in a broader context of potential Fed policy shifts and recent liquidations, underscoring a cautious but increasingly sophisticated approach to risk management in the crypto options market.
If you’re looking for a constructive take, this expiry underscores how market participants are using options to manage risk in a volatile environment, potentially leading to more measured price action as September unfolds.