Bitcoin News Today: Traders Braced for Bitcoin Showdown as $4.8B Options Loom

Bitcoin is bracing for potential short-term turbulence as $4.8 billion in crypto options set to expire on Deribit on August 29, 2025, could influence price dynamics. According to Deribit data, the put-to-call ratio for August contracts has reached 1.31, indicating a significant tilt toward bearish positions, with $3.8 billion in BTC options expiring put-heavy. This imbalance suggests increased hedging activity, with traders focusing on downside protection as the price of Bitcoin hovers around $113,000, a level that has failed to break out of a tight trading range in recent days. The market remains under pressure as Bitcoin has fallen over 5% in the last week, despite a year-to-date gain of 21% [7].

The distribution of open interest further highlights the bearish sentiment. Between $105,000 and $110,000, put options hold a $2.45 billion advantage over calls, and similar trends persist across most price ranges. Notably, put options are heavily concentrated at the $112,000 level, a threshold where sellers are positioned to benefit if Bitcoin fails to regain upward momentum. Conversely, bullish positions are largely out-of-the-money, with only 12% of call options placed at $115,000 or below. For long positions to succeed, Bitcoin must push above $116,000 before the expiry, a target that has become increasingly uncertain given the current price trajectory [2].

The outcome of this expiry could be influenced by external macroeconomic signals, particularly the remarks from U.S. Federal Reserve Chair Jerome Powell at the Jackson Hole symposium on August 23. Traders are closely watching for any hints of policy shifts, as the Fed’s stance on inflation and interest rates has a direct bearing on risk markets, including cryptocurrencies. Recent U.S. employment data, which exceeded expectations, has added to market uncertainty, further pressuring Bitcoin’s price [2]. The Fed’s minutes indicate that officials remain cautious about inflation risks, despite growing calls for rate cuts from political figures like Donald Trump.

Adding to the complexity is the rising demand for leveraged products in the Ethereum space, particularly in the form of ETFs and corporate treasury holdings. Ethereum has outpaced Bitcoin in growth since June, with a 70% increase compared to a 9% gain for the leading cryptocurrency. This divergence has contributed to heightened volatility, as the weakening correlation between cryptocurrencies and traditional assets exacerbates price swings. Analysts at K33 Research have noted that the rising ETH/BTC ratio to an annual high of 0.037 signals active risk hedging and could lead to further sharp price movements [6].

The impact of options expiry is compounded by recent outflows from Bitcoin ETFs, which saw nearly $1 billion in redemptions during the past week. This trend reflects profit-taking and liquidations following Bitcoin’s recent peak of $124,747. With the market awaiting Powell’s speech and the outcome of the August 29 options expiry, the path for Bitcoin remains uncertain. A dovish tone from the Fed could support a rebound, while a continued emphasis on inflation could extend the current bearish phase. Derivatives markets suggest that traders are preparing for a potential breakdown below key support levels, particularly around $111,980, which has held as a critical floor for Bitcoin in recent days [4].

As the expiry looms, the market’s focus remains on whether Bitcoin can break free from its consolidation phase and reclaim bullish momentum. The balance of open interest and macroeconomic factors indicate that a significant move, in either direction, is likely before the end of the month.

Source: [1] Deribit - Crypto Options and Futures Exchange for Bitcoin ... (https://www.deribit.com/) [2] Bitcoin Options Expiry Could Trigger Market Shift This Week (https://www.cointribune.com/en/bitcoin-options-expiry-could-trigger-market-shift-this-week/) [3] 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) [4] Top 3 Price Prediction: Bitcoin, Ethereum, Ripple – BTC ... (https://www.fxstreet.com/cryptocurrencies/news/top-3-price-prediction-bitcoin-ethereum-ripple-btc-eth-and-xrp-could-face-volatility-as-markets-eye-powell-at-jackson-hole-202508220408) [5] Volatility back on ETH ! dip opportunity or bull trap? (https://www.reddit.com/r/CryptoMarkets/comments/1mury1s/volatility_back_on_eth_dip_opportunity_or_bull/) [6] K33 Research Analysts Warn of Impending Volatility (https://forklog.com/en/k33-research-analysts-warn-of-impending-volatility/) [7] Crypto traders eye Fed clues with Bitcoin stuck in range (https://www.mitrade.com/insights/news/live-news/article-3-1061637-20250822)