Why Is the Interest Rate Effect Often Negligible for Short-Term Crypto Options?

The interest rate effect is often negligible for short-term crypto options because the time to expiration is very short. The interest rate is a compounding factor over time.

When the time horizon is measured in days or weeks, the compounding effect of even a high-interest rate on the present value of the option's expected payoff is minimal, making the impact on Delta and premium insignificant.