Bitcoin News Today: Bitcoin Bears Eye $13.8B Expiry as Bull Market Balances on a Dollar

Bitcoin’s recent price action has intensified speculation about the future of its bull market, with the cryptocurrency dipping below $114,000 ahead of the $13.8 billion in Bitcoin options set to expire on August 29. The drop to $112,100 marked a six-week low and has heightened bearish momentum as traders brace for what could be a pivotal moment for the asset class [1]. Open interest for call (buy) options stands at $7.44 billion, outpacing the $6.37 billion in put (sell) contracts, but only 12% of those calls are in-the-money at current levels, while 21% of puts are positioned at $115,000 or higher. This imbalance suggests that bears are in a stronger position to influence price action, particularly if Bitcoin fails to break above $116,000 by the expiration date [1]. Deribit, which holds 85% of the market share, dominates the options landscape, followed by CME and OKX [1].

The broader crypto market has mirrored Bitcoin’s struggles, with Ethereum and top altcoins such as XRP, Solana, and Dogecoin also experiencing declines. XRP, for instance, is trading at $2.90, Solana at $184.32, and Dogecoin at $0.2185, all consolidating amid heightened uncertainty. Coinglass data indicates that over $350 million in liquidations occurred in the past 24 hours, with traders navigating the volatile environment ahead of key macroeconomic events [5]. The market capitalization of all cryptocurrencies has fallen to $3.9 trillion, a $300 billion drop from recent highs [2]. Meanwhile, on-chain data reveals that spot Bitcoin ETFs saw net outflows of $311.6 million, while Ethereum ETFs lost $240.1 million [5].

The Federal Reserve’s upcoming remarks at the Jackson Hole symposium on Friday have added to the market’s anxiety. Investors are watching closely for any hints of a shift in monetary policy, particularly regarding potential rate cuts in September. A rate cut could trigger a shift in capital from low-yield U.S. Treasury bills to riskier assets, including crypto. However, recent data from the Bureau of Labor Statistics has muddied the outlook: while the July inflation report showed a slower-than-expected rise in consumer prices, the subsequent producer price index (PPI) report revealed a 0.9% increase, the largest since June 2022. This conflicting data has led to a more cautious stance among traders, with some analysts noting that the dip in prices reflects a small correction rather than a trend reversal [2].

The market’s uncertainty is also being driven by broader macroeconomic concerns, particularly around artificial intelligence spending and its potential to impact tech-sector valuations. Morgan Stanley has warned that rising AI-sector costs could limit major tech companies’ ability to fund share buybacks, which in turn could weigh on equity markets and investor risk appetite [1]. The AI sector’s performance is closely linked to crypto markets, as many institutional investors treat both asset classes as part of a broader tech-driven growth story. A slowdown in AI-related spending could, therefore, indirectly impact Bitcoin and altcoins by reducing capital inflows into high-risk, high-reward assets.

Looking ahead, Bitcoin’s path depends heavily on whether it can reclaim key support levels before the options expiry. If the price falls between $105,000 and $110,000, the net advantage for put contracts is estimated at $2.45 billion, and the trend continues to favor bears up to the $114,000 range [1]. Analysts suggest that bulls need to push Bitcoin above $116,000 to regain control, but the most critical level remains $114,000, where bearish momentum is strongest. The outcome will likely be influenced by a combination of macroeconomic factors, including the Federal Reserve’s policy direction and the broader health of the AI sector.

While the immediate outlook remains uncertain, some market observers remain optimistic about Bitcoin’s long-term trajectory. Pro-crypto policy developments, such as recent executive orders allowing 401(k) accounts to include crypto assets, have reinforced bullish sentiment [2]. Additionally, the growing adoption of stablecoins and institutional interest in tokenized assets suggest that the underlying fundamentals of the crypto market remain strong. However, the near-term volatility underscores the need for patience and caution as traders await clarity from key macroeconomic and regulatory events.

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 dips ahead of Fed chair's remarks at Jackson Hole (https://fortune.com/crypto/2025/08/21/bitcoin-ethereum-fed-jerome-powell-jackson-hole-wyoming/)

[3] Bitcoin Price Falls — And As Usual, Nobody Knows Why (https://bitcoinmagazine.com/markets/bitcoin-price-falls-nobody-knows-why)

[4] Chainlink: Integrating the World Into the Tokenized Asset ... (https://blog.chain.link/chainlink-oracle-platform/)

[5] Bitcoin, Ethereum, XRP, Dogecoin Consolidate Ahead Of ... (https://finance.yahoo.com/news/bitcoin-ethereum-xrp-dogecoin-consolidate-180107904.html)