Svmuu News Bitcoin As the price continues to weaken ahead of the expiration of $10 billion in options—trading well below the much-discussed “Max Pain” price of $72,000—doubts about the validity of this theory are once again intensifying.The “Max Pain Theory” posits that option sellers may manipulate the market to push the underlying asset’s price toward the Max Pain level, causing option buyers to incur maximum losses at expiration and thereby maximizing the sellers’ profits.This theory previously garnered market attention when Bitcoin approached the relevant price range ahead of certain monthly and quarterly option expiries. However, Bitcoin has recently fallen from approximately $67,000 to below $60,000—a trend that has not converged toward $72,000 but has instead diverged from the theory’s predictions.Jasper De Maere, an over-the-counter trader at Wintermute, noted that despite the massive scale of this options expiration, the market has not exhibited any significant price anchoring recently.
However, the market remains vigilant regarding the volatility risks associated with this options expiration. Deribit previously stated that the June quarterly options expiration is one of the larger liquidity events of the year, and the expiration or rollover of a large number of contracts to subsequent cycles could lead to increased short-term market volatility. (CoinDesk)