Bitcoin faces Record $18 Billion Options Expiry This Week
Analysts at Bitfinex are warning of a massive $18 billion Bitcoin options expiry this week. This event is expected to keep volatility low.
Bitfinex analysts explain that a high concentration of calls between $115,000 and $125,000 has created a high-gamma surroundings. This pins the BTC price in a narrow range, reducing volatility. They told crypto.news on September 26 that dealers will likely hedge dynamically as expiry nears.
With the largest ever expiry in dollar terms, the market will likely see muted price movements. The clustering of options around current BTC trading levels will create a “pinning” effect, further suppressing volatility.
Historically, large expiries often lead to reduced volatility before the event, followed by clearer directional moves afterward. In the short term, expect range-bound trading with heightened gamma sensitivity.
- Watch the $115.2k pivot and $120k cluster as key points.
- Traders waiting for a breakout may need to wait until after expiry.
Once these positions roll off, natural price discovery can resume. The options market will likely determine whether Bitcoin breaks out or breaks down.
