Bitcoin Bulls Face Crucial $13.8 Billion Options Expiry
By: Eliza Bennet
The cryptocurrency market is eagerly watching Bitcoin's performance as it approaches its largest options expiry of 2025, valued at around $13.8 billion on May 30. Bitcoin, which recently set a new all-time high above $109,000, now trades slightly lower at $108,000, reflecting a 3% correction. The battle between bulls and bears intensifies, with the former eyeing a push beyond $110,000 to capitalize on $4.8 billion in call options, primarily due to bullish inflows from spot Bitcoin ETFs. Currently, low positioning of put options and a successful spot BTC ETF have given bulls an upper hand as many options are set to expire worthless if Bitcoin maintains levels above $109,000.
At the heart of this financial tug-of-war is the crucial $109,000 level. More than 95% of the $6.5 billion put options are placed below this price, which, if maintained, would render them worthless, representing significant losses for bearish investors. Conversely, approximately $3.8 billion in call options stand to yield massive profits for bulls if Bitcoin holds steady above $109,000. Institutional interest also remains robust, evidenced by a $1.9 billion net flow into Bitcoin ETFs recently.
Nonetheless, the cryptocurrency market remains susceptible to macroeconomic shocks that could dramatically affect Bitcoin's trajectory. Despite bearish optimism awaiting possible downturns, the larger futures market demonstrates a strong bullish sentiment, as open interest in Bitcoin futures stands at $79 billion, with many short positions reflecting intricate market maneuvers to prevent Bitcoin from sustaining the $109,000 mark.
As markets navigate this volatile period, the hope for bulls is hinged on maintaining momentum and scaling new heights, with some market experts already suggesting that Bitcoin might cross the $200,000 threshold by the end of the year. As the expiry date looms closer, investors continue to actively monitor price movements to make the most of current market conditions while managing the inherent risks of cryptocurrency investments.
