Bitcoin Clings to $107K as Friday’s Massive Options Expiry Looms with $102K Key Price

Trading currently near $107,500, Bitcoin has dipped a slight 0.2% over the last day, whereas the CoinDesk 20 — a gauge tracking the top 20 cryptocurrencies by market cap, excluding stablecoins and exchange tokens — slid 0.9% in the same stretch.

Jean-David Péquignot, Deribit’s chief commercial officer, shared with CoinDesk that “this Friday will see one of the year’s heftiest options expirations on Deribit.” He highlighted that Bitcoin options open interest sits at a hefty $40 billion, with 38% of those contracts set to expire by Friday.

“The max pain point — the strike price where option holders are most hurt — is pegged at $102,000 this Friday, paired with a put/call ratio clocking in at 0.73,” Péquignot explained.

During April’s rollercoaster ride, Bitcoin’s implied volatility, as tracked by Deribit’s DVOL, tumbled from 50% down to 38%, possibly reflecting growing market confidence in BTC’s role as a macro hedge, Péquignot noted. Yet, short-term trader sentiment remains ambiguous, with put-call skews failing to signal a clear direction.

Technical Outlook and Market Sentiment

“Bitcoin’s $105,000 threshold plays a crucial role; technical indicators urge prudence if this support level breaks down,” Péquignot remarked. He added that the subdued open interest in perpetual contracts alongside dampened implied volatility and skew portrays a market bracing for modest moves heading into Friday’s expiry.

Crypto Stocks Show Mixed Fortunes Amid Market Moves

Several crypto-related equities found footing on Thursday, with Core Scientific (CORZ) rocketing over 33% after news surfaced in the Wall Street Journal about a potential acquisition by AI infrastructure giant CoreWeave (CRWV).

Meanwhile, Circle (CRCL), Coinbase (COIN), Riot Platforms (RIOT), and Hut 8 (HUT) all nudged gains between 5% and 7%, whereas MicroStrategy (MSTR) slipped almost 1%.

Snapshot of Bitcoin Options Market (Deribit)