Massive $4.9T Options Expiry Hits This Week — Will Bitcoin Explode or Crash?

Bitcoin (BTC)

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  • $4.9T in options expiry could spark major Bitcoin volatility.
  • Altcoins are losing momentum as Bitcoin dominance grows.
  • BTC sits between key liquidation levels at $114K and $120K.

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This week marks one of the biggest liquidity events of the year as $4.9 trillion worth of stock and ETF options approach expiry on September 20. The sheer scale of this event dwarfs the entire crypto market cap and has traders bracing for turbulence. While Bitcoin (BTC) has managed to hold its ground, most altcoins have struggled for months—leaving the market on edge.

Options Expiry Sparks Bitcoin Caution

Past expiries have left a clear mark on Bitcoin’s price action. In March, a similar setup triggered a steep pullback, while June’s expiry brought weeks of choppy consolidation before BTC slipped under $100K. Analysts are eyeing a repeat.

Market watcher TedPillows warns that leverage is again piling up on exchanges, raising the risk of a sharp flush. He notes that such shakeouts often clear excess risk from the system—sometimes paving the way for new all-time highs.

Altcoins Fade as Bitcoin Dominance Climbs

While Bitcoin stays resilient, altcoins have been bleeding market share. Data shows that just 11 of the top 55 altcoins have outperformed BTC over the past two months.

Capital has flowed toward fresh launches and speculative Binance Smart Chain projects, while older names have gone quiet. The market has effectively entered a “Bitcoin season,” with BTC reclaiming the spotlight while alts wait for their turn.

A High-Stakes Liquidity Battle

Currently, Bitcoin is trapped between two major liquidation clusters. Alphractal CEO Joao Wedson highlights $120K as a zone packed with short liquidations, while $114K holds a dense layer of long positions at risk.

Billions in leverage are stacked on both sides, meaning any decisive move could trigger cascading liquidations. The outcome of this battle may set the tone for the rest of the quarter.

As $4.9 trillion in options unwind, crypto markets face a critical crossroads. Whether Bitcoin breaks higher or suffers a flush, this week’s volatility could shape the market’s next major trend.

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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.