Deribit Exchange Reports $3B Bitcoin Options Expiry as Market Prepares for Potential Volatility

Bitcoin is facing a pivotal moment as $3.04 billion in options contracts are set to expire today. According to Deribit data, the max pain price stands at $107,000, while BTC currently trades below this level at $104,682. Despite recent stagnation, the 0.95 put/call ratio indicates sustained bullish sentiment, even as spot and ETF inflows surpassing $1 billion have failed to drive upward momentum.

Market dynamics suggest imminent turbulence. The disparity between the current price and max pain typically prompts aggressive hedging, reflected by a 3.88% increase in options open interest to $46.06 billion. Short sellers may exploit this gap, while call holders could face liquidation pressures.

Derivatives traders appear to be positioning for downside risk, with the options expiry exerting gravitational pull on spot markets. The coming sessions will determine whether institutional inflows can counteract the potential gamma squeeze from this quarterly event.