It’s been a rough end to August for crypto, no two ways about it. Bitcoin, which had been holding up pretty well, suddenly dropped toward $110,000. Ethereum didn’t fare much better, slipping under $4,360. Not exactly the quiet summer closing some had hoped for.
A lot of traders are pointing fingers at a massive options expiry—something like $15 billion worth. That kind of event tends to stir things up. It’s not unusual to see sharp moves as big players adjust their positions. Some are calling it a deliberate play by whales to shake out over-leveraged positions. And honestly, it’s probably working. The real question floating around now is whether Bitcoin might actually break below that big psychological level of $100,000 come September. I think a lot of people are feeling pretty cautious about that.
Why Options Expiries Shake the Market
Big expiration events like this one have a history of causing volatility. Market makers hedging their books can amplify moves, triggering cascading liquidations. We’ve seen it before. In 2017 and again in 2021, sharp downturns around settlement dates shook out weak hands, only for things to calm down—or even reverse—after the event passed.
This feels familiar. Open interest was huge, so the timing of this sell-off isn’t exactly a surprise. It’s a pattern, really. Painful in the moment, but often short-lived. That said, it doesn’t make it any easier to watch.
Not All Signs Are Bearish
But here’s something that might get lost in the panic. Global money supply, what analysts call M2, just reached a new record high. Historically, Bitcoin has tended to follow expansions in liquidity. It doesn’t always happen instantly—there’s often a lag.
So right now, we’re seeing this weird divergence: liquidity is pumping up, but Bitcoin’s dipping down. It doesn’t really add up for the long term. This might just be a temporary correction. A nasty one, sure. But perhaps it’s setting the stage for a stronger rebound later in September.
Of course, nothing is guaranteed. Markets have a mind of their own. But it’s worth keeping the bigger picture in view, even when the short-term charts are all blood red.
