The crypto derivatives market, specifically on Deribit, is anticipating a significant options expiry event this Friday at 08:00 UTC. The total value of expiring BTC options is $6.68 billion and ETH options is $3.5 billion, which together represent over 40% of Deribit's current open interest of $23 billion. Such quarterly expirations often lead to increased market volatility due to higher trading volumes and the closing or rolling over of positions.

Over 25% of these expiring options are expected to be profitable ("in-the-money"), amounting to more than $2.7 billion. Options give holders the right to buy (call) or sell (put) assets at predetermined prices by specific dates. Despite recent price declines in BTC and ETH attributed to factors like miner sales, regulation, and impending Mt. Gox transfers and potential Government liquidations, there is optimism in the market as evidenced by higher premiums on near-term and long-term call options compared to puts.

Traders are eyeing potential positive shifts in BTC by July 12 and ETH by July 5, based on options skew data and anticipation surrounding the launch of ETH ETF trading in July.

Source: Coindesk