$4.7B Bitcoin Options Expiry: Will Crypto Markets Sink Even Further?
The crypto market is bracing for turbulence as 58,000 Bitcoin options contracts, worth a staggering $4.7 billion, are set to expire today, February 28. With BTC already struggling amid Trump’s trade war tensions, traders are watching closely to see if this event triggers another wave of selling pressure.
Bitcoin at a Breaking Point?
The put/call ratio for this options expiry stands at 0.71, meaning there are slightly more bullish (call) contracts than bearish (put) ones. However, open interest (OI) is heavily concentrated at the $120,000 strike price ($1.5 billion), with additional $1 billion at $100K and $110K levels.
On the bearish side, $800 million in open interest sits at the $80K strike price, right where Bitcoin currently trades. Analysts at Greeks Live warned that BTC breaking below $82,000 was a major bearish signal, increasing fears of a deeper correction.
According to market watchers, if Bitcoin fails to close above its 2024 VWAP (volume-weighted average price) bands, the trend could be in serious trouble, potentially dragging prices down to $72,000 or even $77,000.
Crypto Markets in Freefall
The overall crypto market cap has plunged another 6%, now standing at $2.76 trillion. BTC has dropped 5% to $80,200, marking an 18% decline in a week and a 25% correction from its all-time high.
Ethereum isn’t faring any better, crashing 8% to $2,150, its lowest price in over a year. The second-largest crypto has now shed 22% in just seven days. Meanwhile, altcoins are drowning in red, with similar losses across the board.
Adding to the pressure, 526,000 Ethereum options contracts worth $1.14 billion are also expiring today, bringing the total options expiry notional value to a whopping $5.8 billion.
With volatility at extreme levels, all eyes are on BTC’s $77K-$82K range—a crucial battleground that could determine the market’s next major move.
