Next Friday, the crypto market will face the largest Bitcoin options expiration event in history—contracts worth approximately $23.6 billion are waiting for delivery. Will this be the 'trigger point' for significant market volatility, or the 'starting gun' for a new trend? 🚨 We have outlined the key impacts it may bring.
1️⃣ Volatility expected to rise
A large number of options expiring may temporarily amplify buying and selling pressure due to related hedging and position adjustments, leading to increased price fluctuations.
2️⃣ Possible fluctuation near the 'maximum pain' point
The maximum pain point for this expiration is around $96,000, and there is short-term momentum for the market to converge towards this price, or oscillate around it. 📊
3️⃣ Breakthrough of key price levels may accelerate the market
If the price clearly breaks through $120,000 or falls below $85,000 after expiration, trend-driven buying or selling may enter the market, accelerating the situation.
4️⃣ Increased risk of high leverage positions
Increased volatility before and after expiration may trigger a chain liquidation of high-leverage contracts, further amplifying short-term price fluctuations. ⚡
5️⃣ Impact on mid-term capital allocation
Post-expiration adjustments of positions by institutions and large players often influence the market’s liquidity and directional choices in the coming weeks, warranting continuous attention.
Options expiration is an important liquidity node for the market, and investors should pay attention to risk management to avoid excessive exposure to short-term fluctuations. The medium to long-term trend still needs to return to macro environment and capital structure judgment. 🔍
