This Bitcoin Market Dynamic Commands Attention as Prices Surge Past $110K Ahead of $13B Options Expiry
Analysis
Price Impact
HighA $13 billion bitcoin options expiry on friday, coupled with dealers holding net negative gamma exposure at critical price points ($100k-$111k), is set to cause significant market volatility. dealers will likely intensify hedging activities, amplifying price movements.
Trustworthiness
HighThe analysis comes from coindesk, a reputable crypto news source, citing specific data from deribit and amberdata regarding options positions and gamma exposure, which is a recognized market dynamic.
Price Direction
NeutralWhile recent rallies were driven by trade optimism, the options expiry itself doesn't inherently dictate a bullish or bearish fundamental direction. instead, negative gamma exposure suggests dealers will trade with the market (buy as prices rise, sell as prices fall), exacerbating any existing momentum or creating sharper swings around the $100,000 to $111,000 range. this implies heightened volatility rather than a clear directional bias from the expiry mechanics alone.
Time Effect
ShortThe described market dynamic is directly tied to the upcoming options expiry on friday, meaning its significant influence will be concentrated in the very short term, leading up to and immediately following the expiry.
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Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email This Bitcoin Market Dynamic Commands Attention as Prices Surge Past $110K Ahead of $13B Options Expiry Key market dynamic points to potential for heightened market volatility ahead of Friday's options expiry. By Omkar Godbole | Edited by Sam Reynolds Updated Oct 30, 2025, 7:55 a.m. Published Oct 30, 2025, 7:37 a.m. What to know : BTC trades around levels where dealers hold net negative gamma exposure. It suggests potential for heightened price volatility ahead of Friday's options expiry. Bitcoin BTC $ 110,856.05 has rallied past $110,000, led by renewed optimism about the U.S.-China trade relations. The bounce means BTC is now trading at levels where market makers could add to price turbulence ahead of Friday's multi-billion dollar options expiry. Data from the Deribit-listed options market, tracked by Amberdata and Deribit Metrics, show that $13 billion in bitcoin options – calls and puts – are set to expire Friday. Notably, dealers and market makers hold negative gamma exposure at the $100,000 and $111,000 strike prices, which means they have sold (written) more options than they have bought at these levels. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy . In such scenarios, market makers hedge their positions by trading with the market—buying as prices rise and selling as prices fall—to maintain net delta (market)-neutral exposure. Their hedging activity typically intensifies as the expiry nears. That's because gamma sensitivity increases as the time to expiration nears, especially for at-the-money (ATM) or near-the-money options, such as those at the $110K and $111K strikes. BTC dealer gamma distribution Oct. 31 expiry. (Deribit/Amberdata) The chart shows dealer gamma is largely negative between $105,000 and $111,000, indicating a possibility of heightened trading activity around these levels. Beyond this range, gamma exposure turns net positive at $114,000. All told, bitcoin’s next big move may come less from fundamentals than from the mechanical hedging flows of options dealers. Bitcoin Bitcoin Options More For You OwlTing: Stablecoin Infrastructure for the Future By CoinDesk Research Oct 16, 2025 Commissioned by OwlTing Stablecoin payment volumes have grown to $19.4B year-to-date in 2025. OwlTing aims to capture this market by developing payment infrastructure that processes transactions in seconds for fractions of a cent. View Full Report More For You Crypto Traders Take On $800M Liquidations as Fed’s Caution Sparks ‘Sell-the-News’ Reversal By Shaurya Malwa 2 hours ago Large clusters of long liquidations can signal capitulation and potential short-term bottoms, while heavy short wipeouts may precede local tops as momentum flips. What to know : Bitcoin experienced significant volatility, falling to nearly $108,000 before rising above $110,000, with $817 million in leveraged futures liquidations. The Federal Reserve's 25-basis-point rate cut was followed by cautious remarks from Chair Jerome Powell, impacting market optimism. Analysts suggest that while short-term volatility persists, macroeconomic conditions may support Bitcoin's rise if liquidity increases as expected. Read full story Latest Crypto News Crypto Traders Take On $800M Liquidations as Fed’s Caution Sparks ‘Sell-the-News’ Reversal 2 hours ago XRP Rejects $2.67 Breakout in Risk of Deeper Pullback as Fed Cuts Cause Bitcoin Slide 2 hours ago BTC Drops, Then Pops, as Trump Lowers China Tariffs 3 hours ago Asia Morning Briefing: What's the Real Use for a Yen Stablecoin? An Onchain Carry Trade 6 hours ago Chainlink Drops, Then Bounces 4% as FOMC Volatility Drives Crypto Market 11 hours ago Consensys Plans Public Debut, Taps JPMorgan and Goldman Sachs to Lead IPO: Axios 11 hours ago Top Stories Asia Morning Briefing: What's the Real Use for a Yen Stablecoin? An Onchain Carry Trade 6 hours ago BTC Drops, Then Pops, as Trump Lowers China Tariffs 3 hours ago Crypto Traders Take On $800M Liquidations as Fed’s Caution Sparks ‘Sell-the-News’ Reversal 2 hours ago Fed Delivers Expected 25 Basis Point Rate Cut as Markets Await Powell’s Comments 14 hours ago Bitcoin Tumbles Back to $110K on Fed's Powell's Hawkish Comments 13 hours ago Michael Saylor's Strategy Drops $18B in Value, but a Rebound May Be Near: 10X Research 16 hours ago In this article BTC BTC $ 110,856.05 ◢ 2.03 %