Bitcoin Drops To 3-Week Low, Will $22B Options Expiry Help?

Bitcoin has fallen to a three-week low below $109,000, inciting concerns among traders ahead of a $22 billion monthly options expiry on Friday. In the lead-up to the expiry, market sentiment appears mixed as traders have reduced bullish positions, triggering $275 million in liquidations for leveraged bets. Amidst this backdrop, the long-to-short ratios on exchanges like Binance and OKX evolved, with traders adjusting their strategies based on expectations of price support or further declines. If Bitcoin fails to reclaim the $110,000 level, bearish bets could gain a $1 billion advantage by the expiry. Analysts predict that selling pressure might ease post-expiry, as Bitcoin derivatives have shown resilience despite recent downturns. Furthermore, a potential U.S. government shutdown is contributing to rising risk aversion among traders. Tether's stablecoin trading indicates a neutral market sentiment, with some traders looking to capitalize on the price dip. Overall, the upcoming expiry and broader market conditions will significantly influence Bitcoin's trajectory in the short term.

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