$11.7B Crypto Bomb: Bitcoin and Ethereum Options Expiry Looms—Traders Brace for Impact

Markets are bracing for turbulence as a staggering $11.7 billion in BTC and ETH options approach expiry. Volatility traders are licking their chops—or sweating through their designer shirts.

When this much notional value hits the tape, price swings aren’t just likely—they’re practically guaranteed. The only question is who gets caught on the wrong side of the move.

Funny how Wall Street still calls crypto ’niche’ while single-day derivatives events rival traditional markets. Maybe they’ll notice when their precious volatility indices start tracking ETH gamma exposure.

BTC and ETH options reach peak levels for 2025

The Q2 rally for BTC arrived with higher open interest. A year ago, May’s options expiry for BTC had just $4.7B in notional value. 

The notional value of options increased on Deribit, breaking above $42B as the May expiry looms. | Source: Into The Block

The current accrued open interest for BTC and ETH is at the highest level, with almost constant growth since January. 

After the March options expiry, Deribit carried around $19B in notional value. The market recovery in May brought that value to over $42B. Options markets reacted to the renewed bullish direction for BTC, leading traders to add to their positions. 

ETH shows signs of outperforming BTC

The monthly options expiration event for ETH reflects the recent slow market, as the asset hovered around $2,500. The notional value of just $1.7B for monthly options is relatively low for ETH. 

Despite this, ETH trading is gaining traction and the asset is starting to outperform BTC in the short term. ETH regained its positions to 0.025 BTC, while being the only major token in the green as of May 29. 

ETH open interest also expanded rapidly, adding $3B in the past three days. BTC open interest remained NEAR its levels for the past few days, above $37B on major crypto exchanges. ETH is closely watched for signs of sparking an altcoin rally and returning above the $3,000 level.

The options expiry event happens as traders are showing signs of greed. The Bitcoin fear and greed index grew to 74 points, up 3 points in a day. The recent setup is seen as a signal for both BTC and ETH to break out following the options expiry.

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