Looking back at the market movement on January 23, Bitcoin was really constrained by the $1.8 billion options expiry. It was almost breaking above $90k, but then suddenly plunged to $88,800. After a rebound to $89,500, it was hammered back down again. The whole process felt like an invisible hand was holding it down.

According to data, ETF net outflows continued for the fourth consecutive day, with withdrawals totaling $32 million. Coupled with the turbulence in Japanese bonds, global risk assets were all fleeing, putting enormous pressure on spot prices. But the most critical factor was the $1.81 billion options contracts, with the $92,000 maximum pain point and a 0.74 put-to-call ratio, which directly determined market sensitivity. Deribit was very straightforward at the time, noting that positions were concentrated near the key strike price, geopolitical uncertainties persisted, and hedging demand was endless. This kind of constraint couldn’t be loosened easily.

Interestingly, once the options expiration was actually over and the constraints were lifted, Bitcoin immediately rebounded. Short positions were liquidated for $83 million within four hours, while longs only closed $8 million. This gap was immediately reflected in the market. Bitcoin then broke through $90k, restoring its market cap above $1.8 trillion. By the time of writing, the price had already reached $90,745, with potential to push toward $91,000.

So the core takeaway from this move is: the tighter the constraints before options expiry, the more vigorous the rebound afterward. For traders like us, this serves as a reminder that volatility around options expiry should never be underestimated.