Bitcoin Price Under Pressure as $9B Options Expiry Favors Bears

Key Insights:

• Bitcoin price faced pressure ahead of a $9 billion options expiry.
• Bears held a stronger position across near-term options markets.
• Futures open interest climbed as traders prepared for volatility.

Bitcoin price traded under pressure on May 29 as traders prepared for one of the largest monthly options expiries of the year. The event involves approximately $9 billion in contracts and has drawn attention to derivatives positioning across major crypto exchanges.

The move followed a broader market decline that pushed BTC to its lowest level in roughly six weeks before a modest rebound emerged.

Bitcoin Price Faces Heavy Options Expiry

Deribit data showed bearish traders entered the monthly expiry with a favorable setup. Put contracts held a clear advantage near the key settlement zone, leaving bullish participants with fewer profitable positions if current levels persisted.

Bitcoin call options open interest at Deribit, BTC | Source: Deribit

That imbalance emerged after leveraged long traders suffered heavy liquidations earlier in the week. Market sentiment weakened because many participants had expected stronger support following Bitcoin’s recovery attempts during May.

Coin Bureau reported that bearish positioning concentrated around the main expiry threshold. Traders focused on that area because settlement outcomes could influence short-term market direction and trigger further volatility.

Source: X

Meanwhile, options activity painted a more balanced picture than previous sessions. Call volume exceeded put volume, indicating some investors still anticipated upside potential despite deteriorating sentiment.

Bitcoin Price Meets Rising Futures Activity

Arab Chain market data showed open interest increased steadily across major exchanges. The trend suggested traders continued opening new positions instead of reducing exposure despite recent market uncertainty.

Bitcoin open interest 30D change | Source: CryptoQuant

Binance maintained the largest share of futures activity. Bybit followed closely, while other derivatives platforms also recorded elevated participation levels. This shift occurred because traders sought exposure ahead of an expected volatility event.

Historical data showed periods of rising open interest often preceded larger directional moves. Increased positioning alone does not predict direction, but it typically reflects stronger trader conviction and deeper market engagement.

Recent accumulation of futures contracts contrasts with earlier periods when liquidations forced rapid position closures. The return of open interest suggested risk appetite improved even as options markets remained defensive.

Bitcoin Price Outlook Reflects Cautious Sentiment

Deribit pricing data for the next monthly cycle showed limited confidence in an aggressive recovery. Traders assigned relatively low probabilities to higher strike levels, reflecting expectations for a slower market rebound.

Source: Deribit

Institutional sentiment also weakened during the week. Spot exchange-traded funds recorded heavy withdrawals, reducing one of the market’s strongest demand drivers. That reaction mirrored broader concerns about economic uncertainty and slowing capital inflows.

At the corporate level, several firms reduced direct Bitcoin exposure. Sequans Communications announced plans to liquidate its holdings, while other public companies adjusted treasury strategies during the recent market downturn.

Those developments arrived as traders evaluated broader adoption trends and changing risk conditions. Although long-term participation remained intact, near-term positioning favored capital preservation rather than aggressive accumulation.

The next major catalyst remains Friday’s options settlement. Traders will watch whether derivatives positioning unwinds smoothly or triggers another volatility spike. Futures activity suggested participants expected a larger move ahead, but current options pricing indicated bears retained the advantage in the immediate term. For now, BTC crypto remained caught between rising speculative activity and persistent caution from institutional investors.

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