Bitcoin is in the spotlight as $7.8 billion worth of options contracts are set to expire on Jan. 31, according to Deribit. With Bitcoin currently trading above the “max pain” price of $98,000, traders and market makers are bracing for volatile price movements. The max pain level represents the price at which option buyers face maximum losses and market makers gain the most. Deribit CEO Luuk Strijers emphasized the potential market dynamics, noting that “speculation about a Bitcoin strategic reserve announcement adds an additional layer of market anticipation.”
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Whales Enter Accumulation Phase
CryptoQuant data reveals that Bitcoin whales are back in accumulation mode after a lull in early January. Large holders increased their holdings by 2% between Jan. 14 and Jan. 17, marking the highest monthly growth rate since mid-December. This renewed buying follows the inauguration of President Donald Trump, whose administration is expected to promote pro-crypto policies. According to CoinDesk, market analysts believe this whale activity could create a price floor, stabilizing Bitcoin before its next significant move.
Retail Demand Cools while Institutional Interest Grows
While institutional players ramp up their activity, retail demand for Bitcoin appears to be slowing, according to CryptoQuant. Apparent demand, an indicator of Bitcoin’s production versus inactive inventory, has declined from 279,000 BTC in early December to 75,000 BTC today. For Bitcoin prices to rally further, experts say retail interest must reignite.
At the time of writing, Bitcoin is sitting at $105,546.23.
