What Is the Primary Factor Driving the Time Value of a Crypto Option?

The primary factor driving the time value of a crypto option is the time remaining until its expiration date. The more time left, the greater the chance for the underlying cryptocurrency's price to move favorably, increasing the option's potential to become profitable.

This potential is what buyers are willing to pay for. As the expiration date approaches, the time value decays at an accelerating rate, a phenomenon known as theta decay.