Bitcoin targets $110,000 ahead of major options expiration

Last Friday, Bitcoin nearly reached $111,000, sparking excitement in the markets. It was a historic moment that caught media attention. Since then, prices have fallen back below $110,000 as market swings return. Now, Bitcoin faces an important test with $13.8 billion worth of options set to expire on May 31. If the price moves higher, traders betting on gains could see big rewards. But the outcome is still uncertain.

In summary, investors are betting on $4.8 billion in profits if Bitcoin surpasses $110,000. Most put options—95%—become worthless if Bitcoin stays above $109,000. During this period, Bitcoin spot ETFs received $1.9 billion in new money in just three days.
Bitcoin options reflect a key battle between bulls and bears. Bulls want to keep Bitcoin above $110,000 to maximize their gains. They hold about $4.8 billion worth of call options. Bears, however, see their chances shrinking. Around 95% of put options are at prices below $109,000. If Bitcoin stays high, these puts will have little effect.

A chart shows open interest in Bitcoin options as of May 30. The most popular strategies at Deribit were bull call spreads and short calls. These allow traders to profit from a slow rise in Bitcoin while limiting losses if the market drops. This shows traders are cautious about the current move.

The key factor may be Bitcoin spot ETFs. Between May 20 and 22, they saw $1.9 billion poured into them. This large amount supports a bullish outlook. But risks remain. Bears might try to manipulate futures to limit losses. As options expire, every dollar counts.

On charts, the levels of $110,000 and $112,000 are becoming critical. An account called @DarkPurpleHazeX notes that short positions at $112,000 are losing ground. This level has a lot of selling pressure. If Bitcoin breaks through it, a short squeeze could push prices higher.

Technical analysis alone doesn’t tell the full story. The "pinning effect" can keep prices near certain levels. This month, that zone seems to be between $105,000 and $110,000. It could trap both bulls and bears.

There is $79 billion in open futures contracts. This adds to the tension. Moving in either direction could trigger more buying or selling. Traders watch closely for every change—volume, tweets, news—everything matters right now.

The end of the month will be intense. The numbers show a lot of pressure on the market. If Bitcoin goes over $110,000, call options could earn investors up to $4.8 billion. Bears have fewer tools left. Almost all of their puts—95%—expire below $109,000. If prices stay high, those puts won’t matter.

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