Bitcoin Options Expiry Clears 160K BTC Open Interest as Market Resets at $109K

Bitcoin faced a notable options reset this week, following the largest weekly expiry on Deribit. According to Glassnode data, BTC settled near $109,000, just shy of the $110,000 max pain level.

What’s left is a leaner market, with traders weighing whether the next wave will break higher or drag lower.

BTC options open interest dropped sharply from 515,000 BTC to 355,000 BTC in a single sweep. That’s 160,000 BTC worth of contracts gone. It shows just how crowded the derivatives market had become.

Now, the question is where . That rebuild will tell us whether traders are bracing for another slide or quietly setting up for a rally.

Option pricing shows what traders fear. The 25-delta skew favors puts, meaning downside protection is expensive.

Implied volatility trades richer than realized volatility, especially on the short end. That’s a sign the market expects more trouble near term, even if realized price swings haven’t yet caught up. In other words, traders are paying up to guard against losses.

Glassnode’s data highlights one counterpoint. When forced selling hit, some traders stepped in and bought calls. They used the dip to grab cheap upside exposure.

That doesn’t erase the caution in the market, but it does show pockets of confidence that Bitcoin can spring higher on short bursts, even against a heavier backdrop.

At the time of reset, Bitcoin traded near , down almost 6% for the week. Daily volume topped $70 billion, proof that activity remains intense. The selloff hasn’t been thin or illiquid; it’s been driven by real money flows adjusting around expiry.

With old bets cleared, the market is waiting to see where new contracts settle. If open interest rebuilds on the put side, it reinforces the bearish tilt. If calls start filling in, the path to a squeeze opens. For now, Bitcoin is caught between hedgers paying for safety and opportunists betting on rebounds. That tension will decide the next major move.