Bitcoin's price pulled back to $72,500 following a major options expiry, indicating shifts in market sentiment and volatility, Glassnode reveals.
In the lead-up to a major options expiry, Bitcoin approached the $75,000 mark, only to retreat to approximately $72,500, as per insights from Glassnode.
As Bitcoin revisited the $75,000 strike point, pressure in this high gamma area contributed to the subsequent decline to $72,500 ahead of today's significant options expiry.
This data reveals Bitcoin options positioning, volatility outlook, and the underlying market sentiment. pic.twitter.com/14dzI2gSXb
— glassnode (@glassnode) May 29, 2026
The market experienced a temporary rise in implied volatility (IV) to 35% during the downturn, but this quickly settled back to around 32%. Many traders interpreted the price decline as a routine correction.
There has been a noticeable drop in demand for risk hedging, with the 25-delta skew remaining positive at about 14%. This indicates that while put options are more expensive than calls, the need for downside protection has lessened.
Despite reduced selling pressure, the risk premium for Bitcoin's price movements remains intact. Realized volatility increased from 24.5% to 28%, while expected volatility stayed at 35%, suggesting that the options market is anticipating larger price swings than those currently observed.
Currently, order flows appear balanced, with equal distributions of put and call trades at 25% each, reflecting uncertainty regarding future price movements.
The market saw a clearance of positions worth $8 billion at the $75,000 strike, leading to a reestablishment of gamma distribution across a broader price spectrum. Analysts noted profit-taking at the $70,000 level, indicating diminished concerns about significant price drops.
Additionally, on May 28, CryptoQuant reported that long-term holders are retaining a record amount of Bitcoin, with their total holdings reaching 15.8 million BTC.
