Bitcoin News Today: "Bitcoin's $13.8B Options Expiry: A Make-or-Break Moment for the Bull Market"

Bitcoin and broader cryptocurrency markets faced a significant correction, with prices dropping to six-week lows, sparking questions about whether the ongoing bull run has ended or merely entered a temporary pause. Market observers are closely monitoring the Aug. 29 Bitcoin options expiry, a $13.8 billion event that could determine the immediate trajectory of the asset. Open interest in call options (buy) stands at $7.44 billion, slightly higher than put options (sell) at $6.37 billion, but the pressure from bears intensified after Bitcoin fell below $114,000. The outcome hinges on whether Bitcoin can maintain support levels above $112,000 ahead of the expiry.

Analysts highlight that only 12% of call options are placed at or below $115,000, while 21% of puts are positioned above that threshold, signaling bearish momentum. This imbalance suggests that short-term traders may be more confident in downward price action. Deribit, the leading derivatives exchange, accounts for 85% of the market, followed by CME and OKX. The market is also awaiting comments from U.S. Federal Reserve Chair Jerome Powell, scheduled for Friday, which may provide clarity on whether rate cuts are on the horizon. Hotter-than-expected jobless claims data added to the anticipation, keeping macroeconomic uncertainty high.

Solana (SOL) and other major altcoins have shown relative strength compared to Bitcoin during the recent market pullback. Solana surged 6.1%, outperforming Bitcoin's modest 1.4% recovery. Ethereum (ETH) rebounded 7% from overnight lows to $4,350, with some speculation that corporate treasury purchases contributed to the rally. BNB (BNB), the native token of the BNB Chain, hit a record high of $875. These altcoins’ outperformance highlights a potential shift in market sentiment, with smaller-cap cryptocurrencies taking a more prominent role in the rally, a phenomenon often referred to as “altcoin season.”

Bitcoin’s dominance in the cryptocurrency market, measured by its share of total market capitalization, is approaching a six-month low. This trend indicates that investors are increasingly favoring riskier, smaller-cap tokens over Bitcoin during the correction. Despite this, analysts remain cautious, noting that while an altcoin season may be emerging, it is unlikely to mirror the explosive gains seen in past cycles. Instead, growth is expected to be selective and driven by fundamentals, with high-quality projects outperforming speculative assets.

The broader macroeconomic environment adds another layer of complexity. Artificial intelligence sector spending concerns have amplified caution in equity markets, and investors remain wary of the artificial intelligence sector’s impact on major tech firms' ability to fund buybacks. Additionally, the U.S. Federal Reserve's stance on interest rates remains a critical factor influencing risk appetite. Traders are bracing for volatility as Powell’s comments at Jackson Hole could signal the central bank’s readiness for rate cuts in September. A dovish tone might trigger a relief rally, but any hesitation could accelerate the slide toward $100,000 for Bitcoin.

On-chain data reveals further fragility in the market. Short-term Bitcoin holders are selling at a loss for the first time since January, a pattern historically associated with deeper corrections. Trading volumes have also declined relative to July despite August’s new highs, while retail activity has surged—a mix often associated with market peaks. Meanwhile, the fear and greed index dropped to 44, its lowest in nearly two months, reflecting deteriorating sentiment. Analysts warn that a break below $108,000 could open the door to $100,000, a level many traders view as a critical psychological benchmark. The coming weeks will be pivotal in determining whether the bull market remains intact or enters a more prolonged bearish phase.

Source: [1] Bitcoin Bull Market Hinges On $13.8 Billion Options Expiry (https://cointelegraph.com/news/bitcoin-s-13-8b-options-expiry-puts-bulls-on-edge-ahead-of-key-test) [2] Bitcoin could reach $200,000 within 6 months during 'long ... (https://finance.yahoo.com/news/bitcoin-could-reach-200000-within-6-months-during-long-exhausting-crypto-bull-market-173358527.html) [3] Solana Price, SOL Price, Live Charts, and Marketcap (https://www.coinbase.com/price/solana) [4] BTC, ETH, XRP, BNB, SOL, DOGE, ADA, LINK, HYPE, XLM (https://cointelegraph.com/news/price-predictions-8-20-btc-eth-xrp-bnb-sol-doge-ada-link-hype-xlm) [5] Ether, Solana, BNB Outshine Bitcoin as Cryptos Rebound (https://finance.yahoo.com/news/ether-solana-bnb-outshine-bitcoin-220621511.html) [6] Solana and DOGE Gain Ahead of Powell's Jackson Hole ... (https://www.coindesk.com/markets/2025/08/21/bitcoin-hovers-at-usd113k-solana-and-dogecoin-lead-gains-ahead-of-powell-s-jackson-hole-speech)