The upcoming crypto options expiry is raising concerns about significant Bitcoin sell pressure that could push the price below a key support level.
On August 16, over $1.4 billion worth of Bitcoin (BTC) options are set to expire at 8:00 am UTC, according to Deribit. The “max pain point” for these options is set at $60,000, meaning this is the price at which most options contracts would expire worthless.
However, Bitcoin’s price fell over 3.6% in the past 24 hours, trading at $58,101 as of 8:35 am, according to Cointelegraph data.
This decline suggests that the $1.4 billion in options could introduce more downside volatility unless Bitcoin stages a recovery above $60,000. Typically, periods close to options expiry bring increased price volatility to the crypto market.
Could Bitcoin ETFs help BTC price recover?
While inflows into U.S. spot Bitcoin exchange-traded funds (ETFs) were positive for two consecutive days, they turned negative again on August 14, with net outflows exceeding $81 million, according to Farside Investors.
Bitfinex analysts suggested that the favorable Consumer Price Index (CPI) reading could encourage more inflows into Bitcoin ETFs. They told Cointelegraph:
“The favorable CPI data is expected to catalyze further inflows. Investors are likely positioning themselves to benefit from the expected rate cut and the potential for a broader market rally. As a result, we might observe continued and possibly accelerated inflows into these ETFs, reflecting a shift in sentiment toward risk-on assets.”
The U.S. Bureau of Labor Statistics (BLS) reported July CPI data on August 14, showing annualized price increases for consumers of 2.9%, the slowest rate increase since 2021.
ETF inflows have historically contributed significantly to a cryptocurrency’s price appreciation. For Bitcoin, ETFs accounted for about 75% of new investment by February 15, helping it surpass the $50,000 mark.
Could Bitcoin price dip below $56,000?
Bitcoin could potentially dip below $56,000 before gaining more upside momentum.
According to market sentiment among Bitcoin whales, BTC is likely headed to the $56,000 support level. Trade Confident, a crypto research platform, posted on August 14:
“Based on current market indicators, we are looking at $56k for $BTC’s next move!”
