$11 Billion in Bitcoin Options Expire Tomorrow—Here's What It Means

Here's why that matters for Bitcoin's price. About $11 billion in Bitcoin options expire on Friday on Deribit, a crypto options exchange, with Bitcoin trading near $81,500 a day after the Federal Reserve held interest rates steady while two of its officials voted to raise them.

Even people who never touch options have a stake, because the traders who sold these contracts must buy or sell real Bitcoin to hedge as the price moves, which can add to swings without any news behind them. An option is a contract that gives its holder the right, but not the obligation, to buy (a call) or sell (a put) Bitcoin at a fixed price, called the strike, by a set date.