- Bitcoin options expiry drops OI from 515K BTC to 355K BTC.
- Skew shows demand for puts as traders hedge downside risk.
- Call buyers exploit liquidations to grab cheap upside bets.
Bitcoin faced a notable options reset this week, following the largest weekly expiry on Deribit. According to Glassnode data, BTC settled near $109,000, just shy of the $110,000 max pain level.
What’s left is a leaner market, with traders weighing whether the next wave will break higher or drag lower.
Related: Bitcoin Price Near $109K as PCE Inflation Data and ETF Outflows to Test $107K Support
Open Interest Drops 160,000 BTC
BTC options open interest dropped sharply from 515,000 BTC to 355,000 BTC in a single sweep. That’s 160,000 BTC worth of contracts gone. It shows just how crowded the derivatives market had become.
Now, the question is where new positions will be built. That rebuild will tell us whether traders are bracing for another slide or quietly setting up for a rally.
Related: Traders Target $120K as Bitcoin Awaits Key U.S. PCE Inflation Report
What Skew and Volatility Say About Sentiment
Option pricing shows what traders fear. The 25-delta skew favors puts, meaning downside protection is expensive.
Implied volatility trades richer than realized volatility, especially on the short end. That’s a sign the market expects more trouble near term, even if realized price swings haven’t yet caught up. In other words, traders are paying up to guard against losses.
Where Traders Moved During Liquidations
Glassnode’s data highlights one counterpoint. When forced selling hit, some traders stepped in and bought calls. They used the dip to grab cheap upside exposure.
That doesn’t erase the caution in the market, but it does show pockets of confidence that Bitcoin can spring higher on short bursts, even against a heavier backdrop.
Bitcoin Price Context & Market Metrics
At the time of reset, Bitcoin traded near $109,000, down almost 6% for the week. Daily volume topped $70 billion, proof that activity remains intense. The selloff hasn’t been thin or illiquid; it’s been driven by real money flows adjusting around expiry.
With old bets cleared, the market is waiting to see where new contracts settle. If open interest rebuilds on the put side, it reinforces the bearish tilt. If calls start filling in, the path to a squeeze opens. For now, Bitcoin is caught between hedgers paying for safety and opportunists betting on rebounds. That tension will decide the next major move.
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