Almost $4B in Bitcoin and Ethereum options expire as market braces for volatility after BTC’s record high

Over $3.3 billion in Bitcoin and Ethereum options are set to expire today, raising concerns about potential short-term price swings following Bitcoin’s recent all-time high. Analysts warn of possible downward pressure, though long-term bullish sentiment remains intact.

Bitcoin and Ethereum options: A closer look at market sentiment

Data from Deribit reveals that today’s expiring Bitcoin and Ethereum options carry a notional value of 2.8 billion for BTC and 542 million for ETH. The put-to-call ratios—1.22 for Bitcoin and 1.27 for Ethereum—indicate a bearish tilt, with traders either hedging against declines or betting on further pullbacks.

“Key levels being watched include 110,000 as immediate support$110,000asimmediatesupport,$120,000 as a near-term target, and $150,000-200,000 as longer-term targets,” analysts at Greek. live noted. “Negative funding rates suggest many are still shorting despite the rally, which could trigger a short squeeze.”

The “max pain” price—the level where the most options contracts expire worthless- stands at 104,000 for Bitcoin and 2,450 for Ethereum. With BTC currently trading at 110,787 and ETH at 2,693, the market could see a gravitational pull toward these levels as expiry approaches.

Why traders are hedging against downside risk

The recent surge in Bitcoin and Ethereum options activity reflects growing caution among institutional and retail traders. Despite Bitcoin hitting a new all-time high of $111,917 yesterday, open interest in put contracts (bearish bets) has risen significantly.

“Many traders are securing downside protection through puts, anticipating a brief pullback to the $100,000–$103,000 range,” Greek.live analysts explained. “A 15-20% correction in the short term wouldn’t be surprising given the rapid ascent.”

Ethereum, meanwhile, continues to lag behind Bitcoin’s performance. While BTC has shattered records, ETH has struggled to break past $2,700, disappointing traders who expected a stronger rally ahead of potential ETF approvals.

“Ethereum’s underperformance relative to Bitcoin is notable,” Greek.live added. “Despite expectations for ETH to reach $3,000 by June, it hasn’t followed BTC’s momentum.”

Long-term outlook remains bullish despite short-term jitters

According to data, while the expiry of Bitcoin and Ethereum options may trigger volatility, analysts remain optimistic about the broader market trajectory. Institutional inflows, spot ETF demand, and macroeconomic factors like potential Fed rate cuts continue to support bullish narratives.

“Short-term corrections are healthy in any bull market,” said Markus Thielen, head of research at 10x Research. “The key driver remains Bitcoin’s scarcity and its role as a hedge against inflation. We see BTC reaching $150,000 by year-end.”

For Ethereum, catalysts like network upgrades and growing Layer-2 adoption could reignite momentum.

“ETH’s fundamentals are stronger than ever,” said David Lawant, head of research at FalconX. “Once the market digests this options expiry, we expect a strong rebound.”

What’s next for Bitcoin and Ethereum options traders?

With today’s expiry in focus, traders are closely monitoring key support and resistance levels. A drop below $110,000 for Bitcoin could trigger further selling, while a hold above this level may fuel another leg up.

For Ethereum, reclaiming 2,700 is critical for bullish momentum. Failure to do so may see the 2,450 max pain level.

As the Bitcoin and Ethereum options market evolves, one thing is clear: volatility is here to stay. Whether this expiry becomes a blip or a turning point remains to be seen—but for now, traders are buckling up for a bumpy ride.