Just took a look at tonight’s market. U.S. stocks are set to experience a triple witching day—reportedly, the largest $6.5 trillion worth of contracts will come due—plus the situation in the Middle East is still tense, so it feels like the market may be more active and volatile tonight. U.S. stock futures are currently falling, but the rate of decline is narrowing, while Bitcoin has been hovering around $81,000 over the past couple of days, and trading volume isn’t very active.

Triple witching day refers to the third Friday of March, June, September, and December each year, when stock options, stock index futures, and stock index options all expire at the same time. In the past, because market activity was especially unusual, it was likened to a “witchcraft moment,” and the final hour before the close was especially critical. Historically, triple witching days typically double trading volume and also significantly increase volatility; however, its impact has weakened in recent years. But this time is different—$6.5 trillion in contracts is coming due on record scale, and with liquidity typically lower after the holidays, along with an unstable geopolitical situation, analysts generally expect notable volatility tonight.

In the crypto space, triple witching mainly affects traditional markets, but Bitcoin and Ethereum have recently been closely linked to movements in the stock market, so volatility in equities can easily spill over. Even though there aren’t any particularly major crypto options expiration events today, based on past experience, changes in market sentiment will still directly affect coin prices. My feeling is that we may see some volatility tonight, so investors should be sure to manage risk and diversify appropriately—it’s safer that way.