Bitcoin Awaits $7.8 Billion Day at the End of This Month! Commented by Exchange CEO - Coin Bulletin

At the end of the month, the expiration of Bitcoin options worth approximately 7.8 billion dollars will occur, and it is being discussed that this situation could create significant pressure on prices in the market.

Currently, Bitcoin is trading well above the $98,000 max pain level. However, it is not ignored that market makers may try to pull the price towards this level to maximize their profits.

According to Deribit data, a total of 6 billion dollars worth of Bitcoin options expiring on January 31 will close (out of the money). It is stated that 74,000 contracts will expire at the end of the term, and it is seen that 50% of these options are put options. Put options give investors the right to sell Bitcoin at a predetermined price within a certain period of time.

Deribit CEO Luuk Strijers pointed out that market movements could intensify during this period, stating "The max pain level for this expiry is $98,000, and this price could significantly impact market dynamics in the short term." The max pain price, which represents the most profitable level for market makers, is generally known as the point where buyers suffer the greatest losses. This implies that Bitcoin prices could be drawn towards this level.

Strijers also stated that with the removal of SAB 121 regulation in recent days, banks can now hold Bitcoin and this could start a new era in terms of institutional investor entry into the market. In addition, he stated that speculation about a potential strategic reserve announcement for Bitcoin has created a great expectation in the market.

It is stated that this expiration, which corresponds to 22.6% of the total open positions in the market, can be closed in a profitable state, in-the-money (ITM). This can trigger delta hedge flows and increase volatility. Currently, Deribit's DVOL (volatility index) is around level 60, close to year-end levels.