QCP: This Friday, nearly $20 billion worth of BTC and ETH options will expire, or there will be a quarter-end volatility sell-off

QCP said in its market analysis that following last week's plunge, spot continues to move sideways as the holiday season approaches. While the market seems calm this week, all eyes are on the massive expiration date this Friday, when BTC and ETH options with a notional value of nearly $20 billion will expire for delivery. This accounts for almost half of Deribit's total OI. The typical end-of-quarter volatility sell-off may be seen after the expiration, especially considering that the spot continues to fluctuate and option sellers continue to close their positions. Unlike most option sellers who have to wait for the release of collateral after expiration, call option buyers may have already closed most of their positions. However, if BTC successfully breaks through $100,000, volatility may remain firm. At the same time, as BTC continues to struggle below $100,000, we can also see altcoins start to catch up again. A similar trend was observed a month ago, when BTC was trading around these levels and ETHBTC rebounded from the 0.032 support level. As BTC dominance remains at 58%, we are watching closely for a significant drop below this level to confirm a rotation into altcoins.