What is the Expected Market Response to Today's $2.7B Bitcoin Options Expiration?

Approximately 31,000 Bitcoin options contracts, with a notional value of about $2.7 billion, are set to expire on Friday, Dec. 19. Despite the significant notional value, the event is not expected to greatly affect spot markets, which have been trending downwards due to factors such as Chinese Bitcoin mining crackdowns, delayed US crypto market regulations, and concerns over the Bank of Japan hiking rates. Alongside Bitcoin options, around 155,000 Ethereum contracts, with a notional value of $460 million, are also set to expire. The total notional value of the combined crypto options expiring is roughly $3.2 billion. The market continues to show signs of weakening with Bitcoin and Ether prices falling and total capitalization dropping below $3 trillion, marking its lowest level since April.