As Bitcoin (BTC) and Ether (ETH) options contracts are set to expire this Friday, crypto traders may experience heightened volatility following the U.S. Thanksgiving holiday. On November 29, options worth $9.4 billion in Bitcoin and $1.3 billion in Ether will be expiring on the Deribit exchange, potentially impacting market dynamics.

Of the total Bitcoin options, approximately 45%—valued at $4.2 billion—are “in the money,” with a majority being call options, where the strike price is lower than the current market price. This suggests a strong potential for volatility as traders may close positions to lock in profits. A similar situation occurred in October when a $4 billion options expiration led to a 3% drop in Bitcoin’s price.

Traders are particularly focused on strike prices around $82,000 for calls and $70,000 for puts. Analysts like Andre Dragosch believe that most of the open interest in puts is likely tied to hedging rather than bearish speculation. Despite some bearish bets, Bitcoin’s price is well above the max pain price of $78,000, and this significant gap could push market makers to purchase more Bitcoin to hedge their positions. This dynamic could further fuel a rally, possibly taking Bitcoin toward the psychological $100,000 level.