Deribit’s $2.6B options expiry rattles crypto markets

Options expiry contracts worth $2.6 billion across Bitcoin, Ethereum, XRP, and Solana settled on Deribit on May 15, triggering widespread market liquidations.

According to Deribit data, approximately 25,000 Bitcoin options with a notional value exceeding $2 billion rolled off on May 15, alongside Ethereum, XRP, and Solana contracts, bringing the total to $2.6 billion. Crypto prices tumbled and pared almost all of Thursday’s Clarity Act-driven gains as the expiry landed.

Bitcoin’s max pain price sits at $80,000, slightly below current market levels. The put-call ratio of 0.57 reflects more calls than puts, indicating broadly bullish positioning heading into the event. However, the 25 delta skew rose sharply, signalling that the market is paying a premium for downside protection in the near term.

Macro headwinds add pressure

The expiry settled alongside fresh macro pressure. US Treasury yields hit 12-month highs on May 15 after hotter-than-expected CPI and PPI data for April reinforced expectations that the Federal Reserve will hold rates higher for longer. CME FedWatch now shows markets pricing a 44% probability of a Fed rate hike by December, up sharply from 22.5% a week ago.

As crypto.news noted, expiry events of this size typically create short-term price gravity toward the max pain level as market makers manage hedges into the close. XRP fell from $1.55 to $1.45 as traders adjusted positions, while Solana recorded $17.03 million in expiring options with a put-call ratio of 1.03 and slid 3%.

Glassnode data cited in derivatives reports shows current Bitcoin capital inflows are weaker than in past bull phases. As crypto.news tracked, previous large expiry events have often produced volatility compression in the days after settlement before the next directional move establishes itself.