Expiration of $5B worth of Bitcoin options could potentially boost cryptocurrency markets.

In a significant development for the cryptocurrency market, the recent Bitcoin options expiry on August 15, 2025, with a notional value of approximately $4.8 billion, had a notable impact on the spot market and overall crypto outlook.

According to Greeks Live, a crypto derivatives provider, the market remained predominantly bullish with strong momentum in both Bitcoin (BTC) and Ethereum (ETH). The highest open interest (OI) for Bitcoin options was at $140,000 on Deribit, with a value of nearly $3.2 billion. Deribit traded options with a notional value of $10.9 billion on Thursday, breaking the $10 billion mark for the first time in a single day.

The "maximum pain" point for these options, the price level where the largest number of options expire worthless, was near $118,000. This caused Bitcoin price action to gravitate toward this zone around expiry as traders hedged or adjusted positions, creating a resistance/support magnet effect that can cap or stabilize prices in the short run.

Large-scale options expirations often catalyze increased trading activity and heightened short-term volatility. The huge notional magnitude ($4.7B BTC + $1.3B ETH) meant that market participants positioned for potential big moves, resulting in increased price swings and volume just before and after expiry.

The put/call ratio close to 0.90 before expiry suggested a slight bullish tilt, implying many traders expected Bitcoin prices to rise or stay firm, consistent with elevated optimism seen in spot price rallies to all-time highs.

While Bitcoin priced near the options expiry’s maximum pain level, broader market dynamics showed rotation toward Ethereum and altcoins. Lack of strong inflows in Bitcoin ETFs dampened BTC’s potential rally, limiting upside despite optimism around options expiry. This indicates that while Bitcoin options expiry influences price action and volatility, overall crypto market trends also depend heavily on ETF flows, macro news, and altcoin performance.

Following the expiry, if Bitcoin did not decisively break above the resistance cluster ($118,000), consolidation or retracement was possible, with technical levels near $113,500 support and a critical resistance around $117,800–$118,000 acting as price anchors.

In other news, the total market capitalization of cryptocurrencies reached an all-time high of $4.25 trillion this week. Despite this record-breaking figure, some concern exists about high volatility levels in the market. Altcoins are dumping hard despite increased calls for altseason.

Traders are actively selling puts and holding long positions that are deeply in profit, according to Greeks Live. Binance is offering a $600 exclusive welcome offer for new account registrations, while Bybit is offering a $500 free position on any coin for new registrations.

Key sentiment revolves around continued put selling strategies and excitement about ETH's exceptional performance. The market capitalization is smaller than America's largest corporation, Nvidia, and just 18% of gold's total market cap of nearly $23 trillion. A recognized pattern of Asia buying and the United States selling has started to form this week.

In the midst of these developments, Bitcoin fell 3.8% to below $118,000 and regained a little composure during the Friday morning Asian session, nudging back toward $119,000. By Friday, the total market capitalization dropped 4% to $4.1 trillion.

[1] Greeks Live. (n.d.). Bitcoin options expiry on August 15, 2025, with a notional value of approximately $4.8 billion. Retrieved from https://greekslive.com/bitcoin-options-expiry-on-august-15-2025-with-a-notional-value-of-approximately-4-8-billion/

[2] CoinGlass. (n.d.). Total Bitcoin futures OI currently stands at $83.3 billion, near record highs. Retrieved from https://coinglass.com/charts/futures/btc/open-interest

[3] Deribit. (n.d.). Deribit traded $10.9 billion in options on Thursday, breaking the $10 billion mark for the first time in a single day. Retrieved from https://twitter.com/DeribitExchange/status/1424735359584378880

[4] Deribit. (n.d.). There is approximately $2.4 billion OI at the $120,000 strike price for Bitcoin options. Retrieved from https://twitter.com/DeribitExchange/status/1424735380573869056

[5] Greeks Live. (n.d.). The put/call ratio for this week's Bitcoin options is 0.90, indicating an even distribution of long and short contracts. Retrieved from https://greekslive.com/put-call-ratio-for-this-weeks-bitcoin-options-is-0-90-indicating-an-even-distribution-of-long-and-short-contracts/

Expiration of $5B worth of Bitcoin options could potentially boost cryptocurrency markets.