The post BTC Open Interest Drops 160K as Traders Rebuild appeared on BitcoinEthereumNews.com. Bitcoin options expiry drops OI from 515K BTC to 355K BTC. Skew shows demand for puts as traders hedge downside risk. Call buyers exploit liquidations to grab cheap upside bets. Bitcoin faced a notable options reset this week, following the largest weekly expiry on Deribit. According to Glassnode data, BTC settled near $109,000, just shy of the $110,000 max pain level.  What’s left is a leaner market, with traders weighing whether the next wave will break higher or drag lower. Related: Bitcoin Price Near $109K as PCE Inflation Data and ETF Outflows to Test $107K Support $BTC Options WeeklyThe largest options expiry on Deribit has reset positioning, with BTC settling at $109k vs. a $110k max pain. With expiries cleared, the market faces a clean slate. Monitoring OI, term structure, skew, vol spreads, and flows will be key to assessing sentiment — glassnode (@glassnode) September 26, 2025 Open Interest Drops 160,000 BTC BTC options open interest dropped sharply from 515,000 BTC to 355,000 BTC in a single sweep. That’s 160,000 BTC worth of contracts gone. It shows just how crowded the derivatives market had become.  Source: X Now, the question is where new positions will be built. That rebuild will tell us whether traders are bracing for another slide or quietly setting up for a rally. Related: Traders Target $120K as Bitcoin Awaits Key U.S. PCE Inflation Report What Skew and Volatility Say About Sentiment Option pricing shows what traders fear. The 25-delta skew favors puts, meaning downside protection is expensive.  25 Delta Skew (multi-tenor)BTC options show puts commanding a premium across maturities, most pronounced at the front end. Longer tenors lean neutral. Traders are paying up for downside cover, while upside optionality remains discounted. pic.twitter.com/nGA5X5zQY5 — glassnode (@glassnode) September 26, 2025 Implied volatility trades richer than realized volatility, especially… The post BTC Open Interest Drops 160K as Traders Rebuild appeared on BitcoinEthereumNews.com. Bitcoin options expiry drops OI from 515K BTC to 355K BTC. Skew shows demand for puts as traders hedge downside risk. Call buyers exploit liquidations to grab cheap upside bets. Bitcoin faced a notable options reset this week, following the largest weekly expiry on Deribit. According to Glassnode data, BTC settled near $109,000, just shy of the $110,000 max pain level.  What’s left is a leaner market, with traders weighing whether the next wave will break higher or drag lower. Related: Bitcoin Price Near $109K as PCE Inflation Data and ETF Outflows to Test $107K Support $BTC Options WeeklyThe largest options expiry on Deribit has reset positioning, with BTC settling at $109k vs. a $110k max pain. With expiries cleared, the market faces a clean slate. Monitoring OI, term structure, skew, vol spreads, and flows will be key to assessing sentiment — glassnode (@glassnode) September 26, 2025 Open Interest Drops 160,000 BTC BTC options open interest dropped sharply from 515,000 BTC to 355,000 BTC in a single sweep. That’s 160,000 BTC worth of contracts gone. It shows just how crowded the derivatives market had become.  Source: X Now, the question is where new positions will be built. That rebuild will tell us whether traders are bracing for another slide or quietly setting up for a rally. Related: Traders Target $120K as Bitcoin Awaits Key U.S. PCE Inflation Report What Skew and Volatility Say About Sentiment Option pricing shows what traders fear. The 25-delta skew favors puts, meaning downside protection is expensive.  25 Delta Skew (multi-tenor)BTC options show puts commanding a premium across maturities, most pronounced at the front end. Longer tenors lean neutral. Traders are paying up for downside cover, while upside optionality remains discounted. pic.twitter.com/nGA5X5zQY5 — glassnode (@glassnode) September 26, 2025 Implied volatility trades richer than realized volatility, especially…

BTC Open Interest Drops 160K as Traders Rebuild

2025/09/27 06:07
  • Bitcoin options expiry drops OI from 515K BTC to 355K BTC.
  • Skew shows demand for puts as traders hedge downside risk.
  • Call buyers exploit liquidations to grab cheap upside bets.

Bitcoin faced a notable options reset this week, following the largest weekly expiry on Deribit. According to Glassnode data, BTC settled near $109,000, just shy of the $110,000 max pain level. 

What’s left is a leaner market, with traders weighing whether the next wave will break higher or drag lower.

Related: Bitcoin Price Near $109K as PCE Inflation Data and ETF Outflows to Test $107K Support

Open Interest Drops 160,000 BTC

BTC options open interest dropped sharply from 515,000 BTC to 355,000 BTC in a single sweep. That’s 160,000 BTC worth of contracts gone. It shows just how crowded the derivatives market had become. 

Source: X

Now, the question is where new positions will be built. That rebuild will tell us whether traders are bracing for another slide or quietly setting up for a rally.

Related: Traders Target $120K as Bitcoin Awaits Key U.S. PCE Inflation Report

What Skew and Volatility Say About Sentiment

Option pricing shows what traders fear. The 25-delta skew favors puts, meaning downside protection is expensive. 

Implied volatility trades richer than realized volatility, especially on the short end. That’s a sign the market expects more trouble near term, even if realized price swings haven’t yet caught up. In other words, traders are paying up to guard against losses.

Where Traders Moved During Liquidations

Glassnode’s data highlights one counterpoint. When forced selling hit, some traders stepped in and bought calls. They used the dip to grab cheap upside exposure.

That doesn’t erase the caution in the market, but it does show pockets of confidence that Bitcoin can spring higher on short bursts, even against a heavier backdrop.

Bitcoin Price Context & Market Metrics

At the time of reset, Bitcoin traded near $109,000, down almost 6% for the week. Daily volume topped $70 billion, proof that activity remains intense. The selloff hasn’t been thin or illiquid; it’s been driven by real money flows adjusting around expiry.

With old bets cleared, the market is waiting to see where new contracts settle. If open interest rebuilds on the put side, it reinforces the bearish tilt. If calls start filling in, the path to a squeeze opens. For now, Bitcoin is caught between hedgers paying for safety and opportunists betting on rebounds. That tension will decide the next major move.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

Source: https://coinedition.com/btc-open-interest-drops-160k-as-traders-rebuild/

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