Bitcoin Options Expiry: $4.7B at Risk, Bears Eye $80K

Bitcoin options contracts worth approximately $4.7 billion are set to expire on February 28, with a put/call ratio of 0.71 indicating a higher number of call contracts compared to puts. The open interest remains highest at the $120,000 strike price, accounting for $1.5 billion in contracts. Additionally, the $100,000 and $110,000 strike prices have around $1 billion in open interest each, while bearish sentiment is increasing, with $800 million in contracts positioned at the $80,000 strike price, Bitcoin's current level.

Market sentiment remains predominantly bearish, with traders watching $82,000 as a critical support level. Technical analysts warn that if Bitcoin closes below the 2024 volume-weighted average price (VWAP) bands, the higher timeframe trend could be at risk, potentially pushing the asset toward the $77,000-$72,000 range. Meanwhile, Ethereum is also facing a major expiry event, with 526,000 options contracts worth $1.14 billion expiring, and a put/call ratio of 0.52 indicating relatively balanced positioning.

With Bitcoin facing heightened volatility, some traders are shifting toward call ratio spreads as a defensive strategy, expecting choppy price action with a potential retest of $88,000 before a clearer direction emerges. Deribit reports that traders are preparing for further market turbulence, hedging against the risk of Bitcoin declining to levels last seen after election day. The broader outlook remains weak, exacerbated by US President Donald Trump's tariffs on Mexico, Canada, China, and Europe.

The ongoing sell-off in the crypto markets has intensified, with total market capitalization dropping another 8.4% on Friday to $1.6 trillion. Bitcoin has corrected more than 25% from its all-time high, dipping below $80,000 for the first time since November 10. Ethereum, meanwhile, saw an even steeper decline, falling 8% to $2,150, marking its lowest price in over a year with weekly losses of 22%. Other major cryptocurrencies also slid, with losses ranging from 2% to 8%.