Scary Bitcoin volatility? $750M in BTC options set to expire for Halloween

A big Bitcoin (BTC) volatility spike could occur by the month’s end as two major factors come into play. The BTC options market nears a massive $750 million expiration and the CME futures market’s open interest has also soared.

When an options expiry nears, holders of options contracts have to adjust their contracts before or right after the expiration. Often times, that could cause volatility in the price of Bitcoin.

Options open interest. Source: Skew

Monthly close, options expiry, and CME expiration all coincide

It is difficult to gauge the volatility coming from Bitcoin options until one to two days before the actual expiration. But, the upcoming expiration, which would occur on the last Friday of the month, coincides with other important dates.

According to the CME Bitcoin futures calendar, the October futures contract expires on Oct. 30. All CME monthly Bitcoin futures contracts expire on the last Friday of each month.

The upcoming expiry of CME Bitcoin futures contracts is particularly important because of its high open interest.

As Cointelegraph reported last week, the CME became the second-biggest Bitcoin futures market by open interest, overtaking Binance Futures and other major exchanges.