Whale Dump and Options Expiration May Trigger Large Volatility

1. Whale Dump, Market Flash Crash

A few days ago, a large holder dumped about 24,000 bitcoins, worth nearly 300 million dollars, directly shocking the market. Bitcoin instantly dropped over 2%, dragging Ethereum and a bunch of altcoins down with it, evaporating over a hundred billion dollars in a day. As a result, many people were liquidated, with Bitcoin bulls losing nearly 300 million.

2. This Period's Options Expiration, Increased Volatility

Today (August 27) is a big day, as the crypto market is迎来 annual largest options expiration, with a total scale of about 14.5 billion dollars. Among them:

BTC options account for 11.4 billion dollars, with the maximum pain point around 116,000 dollars.

ETH options have 3.1 billion dollars, with the maximum pain point around 3,800 dollars.

The so-called “maximum pain point” is where the market makers hope the price ends up, so that the most people lose money.

3. How to View and Act

Short-term market volatility is likely to be quite fierce, especially over the next few days which may be manipulated back and forth by options.

Overall sentiment for BTC is bearish, with many people buying protective put options; ETH is relatively more optimistic.

It’s recommended not to go heavily leveraged, control leverage, and it’s best to have some hedging to avoid being suddenly liquidated.