7.9 billion USD Bitcoin options expire on Friday! The biggest pain point is at $71k, could a short squeeze show be happening?

Bitcoin will see $7.9 billion in options settle, with the market focusing on the battle at $62,000 and $75,000. Currently, the bulls are heavily betting on call options at $75,000.

The cryptocurrency market is about to experience a major turning point. This Friday, nearly $7.9 billion worth of Bitcoin options will expire on the Deribit platform. The latest distribution of open interest shows that market funds are densely positioning around the two key strike prices of $62,000 and $75,000, signaling a tug-of-war between bulls and bears.

According to on-chain data from analytics firm Glassnode, $75,000 is the current stronghold for the bullish camp’s heavy bets on call options. As of now, open contracts at this strike amount to as much as $395 million.

Image source: Glassnode

What’s more concerning is that at the $75,000 level, the “Gamma Exposure” shows a deep negative value. In financial markets, this indicates that market makers, for hedging purposes, tend to operate under a “buy high, sell low” logic. When the price rises, they need to buy more Bitcoin; when it falls, they must sell more. This force will further amplify market volatility, making the $75,000 zone an extremely turbulent “eye of the storm.” When the price approaches this level, even more intense fluctuations could occur.

On the downside, open interest in puts (which provide downside protection) is concentrated at $62,000, with a total contract value of about $330 million. This forms the main support zone for Bitcoin’s retracement.

At the intersection of bullish and bearish forces, the “max pain price” for this expiration is at $71,000. The “max pain” point is the price at which the most traders would suffer financial losses at expiration. Historical experience shows that as settlement approaches, the price often gravitates toward this “max pain” level.

Currently, Bitcoin is trading above the max pain point of $71,000, and the next test will be whether the bulls can hold onto their gains.

Beyond the options market, the undercurrents in the futures market are also worth noting. The funding rate for perpetual contracts remains negative, indicating a large accumulation of short positions. If Bitcoin can hold above the $75,000 level, these shorts will be forced to buy back Bitcoin to close their positions, which could boost upward momentum and ignite a “short squeeze” rally.

• This article is reprinted with permission from: “BlockBeats”
• Original title: “$7.9 Billion BTC Options Expiring! Market Focuses on ‘2 Key Levels,’ Max Pain at $71,000”
• Original author: Block Sister MEL