- Crypto markets took a sharp downturn overnight with Bitcoin losing nearly 4%.
- More than $800 million worth of futures options are due to expire on October 30.
- Wall Street has its roughest day since June.
There is roughly $750 million worth of bitcoin options contracts-essentially bets on what the price of Bitcoin will be at a future date-due to expire on October 30.
That’s according to data and analytics firm Skew. If that wasn’t enough, there’s $76 million worth of ETH options due to expire at the same time.
What does that mean? When the contracts expire, if the bettors had been right, they get a nice pay day, if they’re wrong, they lose their stake. Many market watchers interpret these events as moments of increased volatility.
We’ve had big expiry dates like this before, most notably in September, when $1 billion in bets were due to be closed, but it did little to move Bitcoin’s inexorable rise.
Today however, something appears to have spooked the world’s biggest cryptocurrency by market cap. Bitcoin took a big hit dropping 3.53%, taking the global market cap down with it.