Bitcoin (BTC) Options Contracts Worth $7.8B Set to Expire on Jan. 31, Whales Enter Accumulation Phase

Bitcoin is in the spotlight as $7.8 billion worth of options contracts are set to expire on Jan. 31, according to Deribit.

Bitcoin price movements are under close observation as options contracts worth $7.8 billion are set to expire on Jan. 31, Deribit data shows. With Bitcoin currently trading above the “max pain” price of $98,000, traders and market makers are anticipating volatile price shifts. The max pain level indicates the price at which option buyers incur maximum losses while market makers gain the most. Deribit CEO Luuk Strijers highlighted the possible market dynamics, adding that “speculation about a Bitcoin strategic reserve announcement adds another layer of market anticipation.”

Whales Accumulating Bitcoin Again

CryptoQuant data reveals that Bitcoin whales are once again accumulating the cryptocurrency after a pause in early January. Large holders have increased their holdings by 2% between Jan. 14 and Jan. 17, marking the highest monthly growth rate since mid-December. This renewed buying activity coincides with the inauguration of President Donald Trump, whose administration is widely anticipated to introduce pro-crypto policies. According to CoinDesk, market analysts believe this whale activity could create a price floor, stabilizing Bitcoin before its next major price movement.

Retail Demand Slows Down as Institutions Ramp Up

As institutional players increase their activity, retail demand for Bitcoin appears to be cooling off, according to CryptoQuant data. Apparent demand, an indicator of Bitcoin’s production versus inactive inventory, has decreased from 279,000 BTC in early December to 75,000 BTC at present. For Bitcoin prices to rally further, experts say that retail interest must pick up again.

Bitcoin is trading at $105,546.23 at press time.