Will Bitcoin Drop Even More? $1.8B in Options Expire Today and Markets Are on Edge

It’s Friday, which in crypto land means one thing: options are expiring. And today, a whopping $1.8 billion worth of Bitcoin options contracts are set to close — right as markets have been sliding all week. So, the big question is: will this make things worse?

Here’s What’s Going Down

Roughly 19,300 Bitcoin options are expiring today, and they’re worth about $1.8 billion in total. Most of these are “calls,” which means traders were betting on the price going up — not down. The put/call ratio is sitting at 0.65, showing more optimism than fear… but that might not matter much right now.

The most open interest (basically where people were betting big) is at the $120K strike price. There’s also a ton of action around the $100K and $110K marks. That’s a lot of bullish energy — but Bitcoin has been backing away from those levels fast.

Bitcoin’s Been Slipping

After touching six figures earlier this week, Bitcoin hasn’t been able to hold on. It dropped to $91,250 this morning and is now floating around $93,000. That’s a 9% drop since the peak on Jan. 7. Ouch.

We’re also getting close to the bottom of a sideways trading range that started in mid-November. If it breaks below that, things could get a bit ugly.

Ethereum’s In the Mix Too

It’s not just Bitcoin — around 140,000 Ethereum options are expiring today too, worth about $455 million. And just like BTC, ETH has been in the red lately. The overall market is feeling the pressure, with the total crypto market cap dropping over 4% in the last 24 hours to around $3.37 trillion.

So… What’s Causing the Drop?

There’s a mix of things fueling this pullback. Inflation concerns are back in the headlines, and there are rumors that the U.S. government might start selling off a chunk of its Bitcoin holdings. That’s been enough to spook the market and trigger some panic selling.

And while options expiries don’t always lead to huge price moves, they do add a layer of volatility — especially when traders are already feeling nervous.

What Happens Next?

Honestly, it could go either way. The expiry might pass without much drama, just like last week. But with the market already looking shaky, any extra pressure could lead to more downside. On the flip side, if Bitcoin manages to hold support and shake off the nerves, we could see a bounce.

Bottom line: today’s a big day for crypto, and things could get choppy. So if you’re glued to your charts — maybe keep some coffee (or wine) close by.

TL;DR: $1.8B in Bitcoin options are expiring today. Markets are already down. Will this make it worse? We’re about to find out.