$5.78 Bln in Bitcoin & Ethereum Options Expiring: More Selloff Ahead?

Highlights
- Today marks the expiry of $5.78 billion in Bitcoin and Ethereum options amid heightened crypto market volatility.
- The U.S. stock market crash, Trump trade war triggers massive volatility in crypto market.
- Matrixport reports that hedge funds, focusing on arbitrage strategies, have been key players in Bitcoin's price correction.
A staggering $5.78 billion in Bitcoin and Ethereum options are expiring today as the crypto market sees heightened volatility and selling pressure today. BTC short-term volatility recently peaked at 90%, while ETH’s short-term volatility surged past 100% as panic grips the market amid Trump tariff wars.
59,000 Bitcoin Options Expire As BTC Tanks Under $80,000
Bitcoin price crashed another 6% in the last 24 hours, diving $80,000 earlier today amid the broader crypto market correction. A total of 59,000 Bitcoin option contracts are expiring today with a notional value of $4.68 billion and a put-call ratio of 0.71. The data indicates that the maximum pain point for the expiring options is set at $96,000.
The market faced near-collapse this week, driven by the U.S. stock market crash and a series of security breaches such as the Bybit hack. Under the pressure of these events, mainstream cryptocurrencies led a sharp downturn, with implied volatility (IV) surging significantly. Notably, Bitcoin’s short-term volatility spiked to 90%, reflecting heightened market instability, as per Deribit data.
Hedge Funds Behind the BTC Unwinding
The latest report from Matrixport suggests that hedge funds, instead of traditional Wall Street investors have been the primary drivers behind the Bitcoin price unwinding.
“A stronger US dollar causes liquidity measures to decline, suggesting downward pressure on Bitcoin prices,” the report states. The analysis points to global liquidity peaking in late December 2024—driven by a surging US dollar—as a “clear explanation for Bitcoin’s ongoing correction.”
As per the Matrixport research report, there are two types of institutional Bitcoin investors. The first group consists of wealth and asset managers who view Bitcoin as “digital gold” and a long-term investment, typically holding between 100-1,000 BTC.
In contrast, the second group—hedge funds—focuses on arbitrage strategies rather than long-term price appreciation. These funds basically exploit the market inefficiencies by shorting Bitcoin futures and simultaneously purchasing spot Bitcoin or Bitcoin ETFs to capture the funding rate spread. Notably, a recent report on the US Spot Bitcoin ETF highlights how it impacts the broader market sentiment.
529,000 Ethereum Options Expire Today As ETH Price Drops to $2,100
Ethereum (ETH) is bracing for a significant options expiry event, with 529,000 contracts set to expire shortly. The data reveals a Put-Call Ratio of 0.52, suggesting a slightly bullish sentiment among traders. The maximum pain point for these options stands at $3,000, with a total notional value of $1.12 billion.
Notably, ETH’s short-term volatility has surged, exceeding 100%, reflecting heightened uncertainty in the market. Amid the current Ethereum price crash, the altcoin technical chart forms a death cross.
- MetaMask Launches Hyperliquid Perpetuals In-App, Plans To Integrate Polymarket
- XRP Treasury Holdings Hits $11.5B as Nasdaq-Listed Reliance Global Adds $17M in Fresh Buy
- FOMC Minutes, Jerome Powell Speech: Will Bitcoin Recover or Retrace Further?
- “Meme Coin SZN Is Here,” Says CZ As GIGGLE, 4 Price Skyrocket to All time Highs
- CZ’s YZi Labs Commits $1 Billion Builder Fund As Binance Coin Surpasses XRP
- XRP Price Prediction Amid ETF Approval Roadblock as Analyst Warns of $2.72 Dip
- Binance Coin Price Prediction If It Surpasses Bitcoin Marketcap— Is $3000 Possible in 2025?
- ASTER vs HYPE Price Analysis – Which Perp DEX Token Looks Poised to Dominate Q4 Performance?
- Ethereum Price Could Soar to $6,500 as BlackRock’s ETF Nears $20B Milestone
- Cardano Price Consolidates Below Key Resistance Ahead of ETF Verdict — Is a 50% Rally in Sight?
- Solana Price Eyes 56% Rebound Amid Solana Company’s Massive $530M SOL Acquisition