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

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.