Bitcoin Options Worth $9.4 Billion Expire On Nov 29

(MENAFN- Yolo Wire) %Cryptocurrency traders are bracing for increased volatility this week as %Bitcoin (CRYPTO: $BTC) options contracts worth $9.4 billion U.S. are set to expire on Nov. 29.

Additionally, %Ethereum (CRYPTO: $ETH) options worth $1.3 billion U.S. will expire on the last trading day of the month and heading into the U.S. Thanksgiving holiday weekend.

An option allows the holder the right, but not the obligation, to buy or sell an underlying asset at a specific price within a set period.

Volatility in the crypto market, both for Bitcoin and Ethereum, is expected to spike in coming days as we get closer to the Nov. 29 expiry as investors and traders look to close their bets and book profits.

At the end of October, Bitcoin's price declined 3% as more than $4 billion U.S. of options expired. Traders are reportedly bracing for an even more volatility as November ends.

Some analysts are warning that Bitcoin’s price could surge in coming days as options traders who bet on a decline in the crypto’s price are forced to buy BTC to cover potential losses.

With Bitcoin continuing to rally since the Nov. 5 U.S. election, many options traders who bet on a decline in the cryptocurrency’s price are deep in the red currently.

Options traders buying Bitcoin to stem their losses could push the price of BTC above the key threshold of $100,000 U.S., say some analysts.

Bitcoin is currently trading at $97,500 U.S., having gained 120% so far in 2024.

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