Bitcoin has surged above $117,600, hitting its highest point in a month, grabbing the attention of investors once again. However, amidst the bullish rally, a significant warning sign is flashing. Renowned analyst Crypto Ted has raised concerns about the market facing a potential storm as $4.9 trillion in stock and ETF options are set to expire today.
The expiration of such a massive amount of options, which is nearly 1.2 times larger than the entire crypto market’s current valuation of $4 trillion, could lead to wild swings in the market. Ted emphasized that similar large expiries have previously triggered sharp volatility across both equities and cryptocurrencies.
Looking back at historical data, in March 2025, a similar expiry was followed by a market crash within two to three weeks. In June 2025, Bitcoin experienced sideways movement before slipping below $100,000. With traders heavily leveraging once again, Ted believes that the same pattern could play out once more.
On the crypto front, data from Deribit reveals that over $4.3 billion in Bitcoin and Ethereum options are set to expire today. The expiring Bitcoin options have a notional value of $3.5 billion, with a put-to-call ratio of 1.23 and a maximum pain level at $114,000. Ethereum options, on the other hand, account for around $806 million, with a put-to-call ratio of 0.99 and a maximum pain level at $4,500.
These expiration levels often act as magnets for price movements, suggesting that traders could witness sharp swings in the short term. Ted predicts that the build-up of leverage typically ends with a quick flush out, leading to short dips as weak positions are cleared. However, this sets the stage for the next market rally.
Drawing from historical trends, Bitcoin saw a 33% jump in March before a pullback, followed by a 20% rise in June, which was accompanied by a faster drop. Currently hovering near $117,000 in September, Bitcoin is once again witnessing traders taking significant risks. If history repeats itself, this volatility could propel BTC to new highs, supported by the Federal Reserve’s recent rate cut and anticipated future cuts.
In conclusion, investors should brace themselves for potential market turbulence in the coming days as the expiration of $4.9 trillion in stock and ETF options could trigger significant volatility. Keeping a close eye on market developments and staying informed about the latest trends in Bitcoin and other cryptocurrencies will be crucial for navigating through the uncertain times ahead. Stay ahead with breaking news, expert analysis, and real-time updates on the crypto world to make informed investment decisions.