Bitcoin Bulls Target $110,000 Amid $13.8 Billion Options Expiry

Bitcoin bulls are eyeing a significant milestone of $110,000 as the cryptocurrency navigates through a complex market landscape marked by tariff threats and a monumental options expiry worth $13.8 billion. The upcoming expiry on May 30 presents a critical juncture for Bitcoin, with bulls aiming to capitalize on recent market movements to push the price upward.

According to COINOTAG, bulls are strategically positioning themselves to counter market pressures and recent inflows, hoping to secure a price above $110,000. The current open interest in Bitcoin put options stands at $6.5 billion, with 95% of these positions set below $109,000. If Bitcoin maintains its current price levels, only $350 million in put options will remain relevant at expiry, creating a favorable scenario for bulls.

Conversely, the open interest in call options totals approximately $3.8 billion below the $109,000 mark. While this indicates a bullish bias, some traders might have sold these options to hedge against potential losses. The net inflows of $1.9 billion into US spot Bitcoin ETFs between May 20 and May 22 further suggest robust demand for Bitcoin, particularly above the $105,000 threshold. This uptick in ETF inflows could bolster bullish strategies in the lead-up to the options expiry.

However, bearish traders may still attempt to influence BTC futures, driven by concerns around macroeconomic stability. Should Bitcoin’s price rise beyond $110,000, bears could face substantial losses as they are compelled to close their positions. The ongoing tariff war adds another layer of complexity, influencing traders and market behavior as Bitcoin seeks to surpass the $110,000 mark.

Several scenarios have been projected based on current trends. If Bitcoin stays between $102,000 and $105,000, calls would total $2.75 billion against $900 million in puts, favoring bulls by $1.85 billion. For the $105,000 to $107,000 range, calls rise to $3.3 billion vs. $650 million in puts, favoring calls by $2.65 billion. In the $107,000 to $110,000 range, calls hit $3.7 billion compared to $350 million in puts, favoring calls by $3.35 billion. Lastly, within $110,000 to $114,000, calls soar to $4.8 billion against just $120 million in puts, clearly favoring bulls by $4.7 billion.

In summary, Bitcoin’s journey toward $110,000 is fraught with both opportunities and challenges. The dynamics of options expiry, combined with ETF inflows, indicate that while bullish prospects exist, external economic factors could sway market directions. Investors should remain vigilant as these developments unfold, seeking to maximize returns without falling victim to market volatility.