The cryptocurrency market is bracing for a high-tension event this October 29. A massive $17 billion crypto options expiry for Bitcoin (BTC) and Ether (ETH) will occur simultaneously. The event coincides with the crucial Federal Reserve (Fed) meeting and earnings reports from large tech companies. A high probability of sharp movements in prices is expected.
Data from derivatives platforms detail the event’s magnitude. The expiry includes approximately $14.4 billion in Bitcoin contracts. Added to this are $2.6 billion linked to Ether. This concentration of settlements occurs as the Fed concludes its monetary policy meeting. Markets await the official statement at 2:00 PM ET. The release of corporate tech earnings adds another layer of uncertainty.
An options expiry forces investors to make key decisions. They must close, settle, or roll over their positions. When an event of this magnitude aligns with key macroeconomic factors, the risk increases significantly. The convergence of these factors is atypical and puts pressure on arbitrage desks and liquidity providers. The market will seek “max pain,” which is the price where most options expire worthless.
Could the $17 Billion Trigger a Market Collapse?
Analysts note that implied volatility (IV) remains elevated. This reflects the premium that operators demand amid high uncertainty. A phenomenon known as a “gamma squeeze” could accelerate price movements in both directions. A ‘hawkish’ (restrictive) statement from the Fed could trigger significant sales.
Conversely, a more dovish tone or strong tech earnings could help limit losses. Institutional investors are reducing their exposure and actively managing liquidity in this concentrated scenario. Risk management is the priority for traders and funds.
The crypto market faces a highly concentrated risk window this October 29. Risk management will be fundamental over the next few hours. The main focus will be on Jerome Powell’s press conference (Fed Chair) at 2:30 PM ET. His words, along with the $17 billion crypto options expiry, will define the market’s short-term direction.
