Bitcoin Faces Crucial Options Expiry Test with $6.36B at Stake

Bitcoin (BTC) is trading near $80,000 as it faces a critical options expiry event today. A total of $6.36 billion in Deribit options contracts are set to expire, with roughly 81,000 outstanding contracts. This setup could lead to large price movements as traders close, roll, or hedge their positions.

The expiry has a put/call ratio of 0.85, meaning there are slightly more call contracts than puts. Calls become prominent from around $66,000, with significant positions at $70,000, $72,000, $74,000 to $75,500, and $78,500 to $80,500.

The max-pain level is at $69,000, where the combined payout to option holders would be theoretically lowest. However, it's essential to note that this does not necessarily mean Bitcoin will fall to this price. Dealer hedging can create a temporary pull toward this level as expiry approaches.

Bitcoin has added over $16,000 in less than a week, moving from a break above $65,000 to over $81,000 before pulling back. The asset has gained slightly more than 1% in the last 24 hours, 6% over seven days, and 25% across the last month.