Analysis: Interest rate cuts and the expiration of quarterly Options have put Bitcoin at a crossroads.

[Analysis: Interest Rate Cuts and Quarterly Options Expiry Put Bitcoin at a Crossroads] This week, the crypto market will face a critical test, as the quarterly options expiry coincides with an important inflation data release in the United States. This intersection could determine whether the market's upward momentum continues or comes to a halt. According to CEX data, with the third quarter ending on Friday, approximately $22.3 billion in crypto options will expire, including Bitcoin options with a notional value of $17.06 billion. Greg Magadini, head of derivation at the options analysis platform Amberdata, stated that the current Bitcoin expiry cycle is "the largest in history." He stated that the dealer positions show "a large number of short gamma positions at $109,000 and $108,000," which means these price levels must be maintained, or it could trigger a rapid decline. The short-term volatility of Bitcoin largely depends on options traders and large institutions, which hedge their positions in real-time. Their exposure to "gamma" (a measure of how quickly hedges need to be adjusted) may amplify price fluctuations and also help stabilize the market. Short gamma positions mean that traders may be forced to sell as the market declines, thereby exacerbating the price drop.