Bitcoin News Today: Bitcoin faces $5.7B options expiry as price nears key support level

Bitcoin faces a $5.7 billion options expiry on August 1, 2025, with approximately 48,600 contracts set to expire. These contracts carry a notional value slightly less than the large end-of-quarter expiry event from the prior week. The broader market is already under downward pressure due to US President Donald Trump’s executive order imposing new trade tariffs, making it unlikely that this expiry will trigger significant additional volatility [1].

This week’s Bitcoin options show a put/call ratio of 0.75, indicating a higher volume of call options expiring compared to puts. Deribit noted that the max pain point—where traders are expected to incur the most losses—is $116,000, close to the current spot price. Open interest (OI) is highest at $140,000, with nearly $3 billion in contracts, and another $2 billion at the $120,000 strike price, reflecting continued bullish positioning [1].

Market sentiment remains divided, with no consensus on whether the recent price dip represents a buying opportunity or the beginning of a deeper correction. Traders are closely watching $116,000 as a key support level and $118,000 as potential resistance. The Greeks Live trading group noted increasing, but not yet unified, bearish sentiment, highlighting the ongoing uncertainty in the market [1].

Alongside Bitcoin options, approximately 350,000 Ethereum options with a notional value of $1.35 billion are also expiring. These contracts have a put/call ratio of 0.96 and a max pain point of $3,500, indicating a more balanced distribution of bullish and bearish positions compared to Bitcoin [1]. Combined, the notional value of Bitcoin and Ethereum options expiring on Friday totals close to $7 billion.

Deribit observed that institutional activity has played a stabilizing role in Bitcoin’s price. A large strategic purchase of 21,021 BTC prevented the price from falling further below $115,000, underscoring the market’s dependence on corporate treasury flows for support [1].

Meanwhile, the broader cryptocurrency market has experienced a sharp decline. Over the past 24 hours, total crypto market capitalization has dropped by more than 6%, reaching $3.86 trillion. Bitcoin fell to a three-week low below $115,000 during the Asian trading session, while Ethereum briefly dipped to $3,650 before recovering to above $3,700. Altcoins continued to bear the brunt of the sell-off, with Solana, Dogecoin, Cardano, Sui, and Chainlink among the worst performers [1].

Sources:

[1] title: Will Markets Tank Further When $5.7B Bitcoin Options Expire Today?

url: https://cryptopotato.com/will-markets-tank-further-when-5-7b-bitcoin-options-expire-today/