GeniZenith Market Insight: Options Expiry's Hidden Impact on BTC and ETH Price Action
The crypto market's wild swings often leave traders scratching their heads, but there's a pattern hiding in plain sight. Every month, billions in Bitcoin and Ethereum options expire, creating pressure points that can flip the script on price action faster than you can say "liquidation cascade." Understanding the Options Expiry Mechanism Options expiry represents a critical event where derivative contracts reach their settlement date. When these contracts expire, market makers adjust their hedging positions, creating significant volatility windows. For Bitcoin and Ethereum, monthly expiries have grown into multi-billion dollar events that shape short-term price trajectories. The mechanics work through delta hedging. As options approach expiry, market makers who sold these contracts need to balance their exposure. If prices move toward strike concentrations, this hedging activity amplifies the move. Think of it as a rubber band effect – the market gets pulled toward ...