$BTC $4.1B in Options Set to Expire: Why Today Could Reshape BTC and ETH Price Action

Today, June 20, 2025, marks a critical turning point in the crypto market. A staggering $4.1 billion worth of Bitcoin ($BTC) and Ethereum ($ETH) options are expiring, triggering massive speculation around what comes next.

$ETH

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What Is an Options Expiry and Why Does It Matter?

Options are financial contracts that give traders the right—but not the obligation—to buy or sell an asset at a set price. When large volumes of options expire, they impact both price direction and volatility in the short term. Here’s what typically happens:

1. Price Pinning Near Strike Levels

Market makers often hedge their exposure by buying or selling spot Bitcoin and Ethereum as expiration approaches. This can lock the price around key levels like $105K for BTC or $2,900 for ETH, limiting price movement temporarily.

2. Volatility Compression (“Vol Crush”)

After expiry, implied volatility drops, causing option premiums to fall and price swings to shrink—at least for a short period. Traders often describe this as the “calm before the storm.”

3. Reset for a New Trend

Once these massive contracts are settled, the market often enters a new phase. If the expired options were mostly bullish, some upside pressure may vanish. If they were bearish, the market might rally from reduced sell-side hedging.