As Friday rolls around, crypto markets brace for volatility as more than a billion dollars worth of Bitcoin contracts are set to expire. While markets have been relatively calm with minor fluctuations in recent days, the looming options expiry could inject some turbulence into the mix.

According to Deribit, around 18,280 Bitcoin options contracts are set to expire on May 10, with a notional value of approximately $1.15 billion. Although slightly smaller than last week's expiry event, this batch still holds significant sway over market sentiment.

The put/call ratio for this week's BTC options stands at 0.64, indicating that more calls, or long contracts, are expiring than puts or shorts. Open interest (OI) reflects bullish sentiment, with almost $700 million in longs dominating at the $70,000 and $100,000 strike prices.

However, OI for put contracts is also on the rise, particularly at the $50,000 strike price, signaling a degree of hedging among traders. Overall, the open interest for Bitcoin call options outweighs put options by more than double, suggesting prevailing bullish sentiment among traders.

Trading firms like QCP Capital and Paradigm have observed renewed demand for upside call options, with buyers closing existing positions to roll into higher strike calls expiring in July and September.

In addition to Bitcoin options, 276,000 Ethereum contracts are also set to expire, with a notional value of around $840 million. The put/call ratio for Ethereum stands at 0.74, with significant open interest at the $3,600 strike price, indicating bullish sentiment among derivatives traders.

Despite the anticipation surrounding options expiry, crypto markets have remained relatively stable, hovering around $2.45 trillion in total capitalization. Bitcoin, which dipped below $61,000 on May 9, has since recovered to trade around $63,000 during the Asian trading session.

Similarly, Ethereum prices experienced a temporary dip but have recovered to hover around $3,032 at the time of writing. While altcoins are mostly in the green, notable gains have been observed for Solana (SOL) and Toncoin (TON).

As the options expiry unfolds, market participants remain vigilant for potential price movements, with hopes of navigating the volatility to capitalize on trading opportunities.