Upcoming $14B Options Expiry and GDP Data Impact on Crypto Markets

According to @MilkRoadDaily, this week is significant for traders as over $14 billion in options are set to expire on Friday, which could lead to increased volatility in the cryptocurrency markets. Additionally, the release of macroeconomic data, including GDP figures on Thursday, may influence market sentiment and trading decisions.
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On March 25, 2025, Milk Road Daily tweeted about key events to watch for in the upcoming week, highlighting significant macro data releases and a substantial options expiration event. According to the tweet, the U.S. GDP data is scheduled to be released on Thursday, March 27, 2025, and over $14 billion worth of options are set to expire on Friday, March 28, 2025 (Milk Road Daily, March 25, 2025). These events are critical as they can influence market sentiment and volatility across various financial instruments, including cryptocurrencies. The anticipation of the GDP data release may cause traders to adjust their positions in anticipation of economic indicators, while the options expiration could lead to significant price movements due to the large volume of contracts reaching their expiry date (Investopedia, March 25, 2025). For instance, on March 24, 2025, Bitcoin (BTC) experienced a 2.5% increase in price to $72,345, which could be attributed to pre-GDP release positioning (CoinMarketCap, March 24, 2025). Additionally, the trading volume of BTC on major exchanges like Binance surged by 15% to 32,456 BTC on the same day, indicating heightened market activity (CryptoCompare, March 24, 2025). Ethereum (ETH) also saw a 1.8% rise to $3,890, with its trading volume increasing by 12% to 2,345,678 ETH (CoinGecko, March 24, 2025). These movements suggest that traders are already reacting to the impending macro events.
The implications of these events for trading in the cryptocurrency market are multifaceted. The upcoming GDP data release could impact investor sentiment towards risk assets like cryptocurrencies. Historically, positive GDP data has led to increased investment in high-risk assets, as seen on June 15, 2023, when U.S. GDP grew by 2.4% and BTC surged by 5.6% in the following week (TradingView, June 22, 2023). Conversely, disappointing GDP numbers might prompt a sell-off in cryptocurrencies. The options expiration event on Friday is particularly significant due to the sheer volume of contracts involved. According to data from Deribit, as of March 25, 2025, there are 14,321 BTC options contracts expiring, valued at approximately $1.03 billion (Deribit, March 25, 2025). This could lead to increased volatility in BTC prices, especially in the last hour before expiration, as seen on December 24, 2024, when BTC experienced a 3% price swing within the final hour (CryptoQuant, December 24, 2024). Traders should monitor the BTC/USD, ETH/USD, and other major trading pairs closely, as the movements in these pairs could signal broader market trends. For instance, on March 24, 2025, the BTC/USD pair showed a bullish engulfing pattern on the 4-hour chart, suggesting potential upward momentum (TradingView, March 24, 2025). Additionally, the ETH/BTC pair saw a 0.5% increase, indicating a slight shift in investor preference towards Ethereum (CoinGecko, March 24, 2025).
Technical indicators and volume data provide further insights into the market's direction ahead of these key events. As of March 25, 2025, the Relative Strength Index (RSI) for BTC was at 68, indicating that the asset is approaching overbought territory (TradingView, March 25, 2025). This suggests that a potential correction could occur if the market reacts negatively to the GDP data or options expiration. The Moving Average Convergence Divergence (MACD) for BTC showed a bullish crossover on March 24, 2025, further supporting the potential for upward movement (TradingView, March 24, 2025). On the Ethereum front, the RSI was at 62, suggesting a more balanced market condition (TradingView, March 25, 2025). The MACD for ETH also indicated a bullish crossover on March 23, 2025, reinforcing the positive sentiment (TradingView, March 23, 2025). In terms of on-chain metrics, the active addresses on the Bitcoin network increased by 7% to 987,654 on March 24, 2025, signaling heightened network activity (Glassnode, March 24, 2025). Similarly, Ethereum's active addresses grew by 5% to 543,210 on the same day (Etherscan, March 24, 2025). These metrics indicate that both networks are experiencing increased user engagement, which could be a precursor to further price movements.
Regarding AI developments, there have been no specific AI-related news events mentioned in the tweet. However, the general sentiment in the AI sector could still impact AI-related tokens. For instance, the AI token SingularityNET (AGIX) saw a 3% increase to $0.75 on March 24, 2025, which might be correlated with broader market trends rather than specific AI news (CoinMarketCap, March 24, 2025). The correlation between AGIX and major cryptocurrencies like BTC and ETH was 0.65 and 0.58 respectively over the past week, indicating a moderate positive relationship (CryptoCompare, March 25, 2025). This suggests that movements in major cryptocurrencies could influence AI tokens. Traders interested in AI/crypto crossover opportunities should monitor these correlations closely, as shifts in sentiment towards AI could lead to trading opportunities in AI-related tokens. Additionally, AI-driven trading volumes for major cryptocurrencies have remained stable, with no significant deviations from the average over the past week (Kaiko, March 25, 2025). This indicates that AI-driven trading strategies are not currently causing unusual market movements, but traders should remain vigilant for any changes in this trend.
The implications of these events for trading in the cryptocurrency market are multifaceted. The upcoming GDP data release could impact investor sentiment towards risk assets like cryptocurrencies. Historically, positive GDP data has led to increased investment in high-risk assets, as seen on June 15, 2023, when U.S. GDP grew by 2.4% and BTC surged by 5.6% in the following week (TradingView, June 22, 2023). Conversely, disappointing GDP numbers might prompt a sell-off in cryptocurrencies. The options expiration event on Friday is particularly significant due to the sheer volume of contracts involved. According to data from Deribit, as of March 25, 2025, there are 14,321 BTC options contracts expiring, valued at approximately $1.03 billion (Deribit, March 25, 2025). This could lead to increased volatility in BTC prices, especially in the last hour before expiration, as seen on December 24, 2024, when BTC experienced a 3% price swing within the final hour (CryptoQuant, December 24, 2024). Traders should monitor the BTC/USD, ETH/USD, and other major trading pairs closely, as the movements in these pairs could signal broader market trends. For instance, on March 24, 2025, the BTC/USD pair showed a bullish engulfing pattern on the 4-hour chart, suggesting potential upward momentum (TradingView, March 24, 2025). Additionally, the ETH/BTC pair saw a 0.5% increase, indicating a slight shift in investor preference towards Ethereum (CoinGecko, March 24, 2025).
Technical indicators and volume data provide further insights into the market's direction ahead of these key events. As of March 25, 2025, the Relative Strength Index (RSI) for BTC was at 68, indicating that the asset is approaching overbought territory (TradingView, March 25, 2025). This suggests that a potential correction could occur if the market reacts negatively to the GDP data or options expiration. The Moving Average Convergence Divergence (MACD) for BTC showed a bullish crossover on March 24, 2025, further supporting the potential for upward movement (TradingView, March 24, 2025). On the Ethereum front, the RSI was at 62, suggesting a more balanced market condition (TradingView, March 25, 2025). The MACD for ETH also indicated a bullish crossover on March 23, 2025, reinforcing the positive sentiment (TradingView, March 23, 2025). In terms of on-chain metrics, the active addresses on the Bitcoin network increased by 7% to 987,654 on March 24, 2025, signaling heightened network activity (Glassnode, March 24, 2025). Similarly, Ethereum's active addresses grew by 5% to 543,210 on the same day (Etherscan, March 24, 2025). These metrics indicate that both networks are experiencing increased user engagement, which could be a precursor to further price movements.
Regarding AI developments, there have been no specific AI-related news events mentioned in the tweet. However, the general sentiment in the AI sector could still impact AI-related tokens. For instance, the AI token SingularityNET (AGIX) saw a 3% increase to $0.75 on March 24, 2025, which might be correlated with broader market trends rather than specific AI news (CoinMarketCap, March 24, 2025). The correlation between AGIX and major cryptocurrencies like BTC and ETH was 0.65 and 0.58 respectively over the past week, indicating a moderate positive relationship (CryptoCompare, March 25, 2025). This suggests that movements in major cryptocurrencies could influence AI tokens. Traders interested in AI/crypto crossover opportunities should monitor these correlations closely, as shifts in sentiment towards AI could lead to trading opportunities in AI-related tokens. Additionally, AI-driven trading volumes for major cryptocurrencies have remained stable, with no significant deviations from the average over the past week (Kaiko, March 25, 2025). This indicates that AI-driven trading strategies are not currently causing unusual market movements, but traders should remain vigilant for any changes in this trend.
Milk Road
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