Bitcoin is trading near $109,350 today, dipping below the $110,000 mark for the first time in six weeks and signaling the potential for further corrections.

The drop comes just as nearly $21 billion in cryptocurrency options are set to expire, creating a pivotal moment for the world’s largest digital asset. Data from Deribit shows more than $17 billion in Bitcoin options are expiring, with a significant concentration in bullish contracts, raising the stakes for both bulls and bears.

At the time of writing, BTC price is up 0.2% on the day but nearly 5% down for the week, reflecting broader weakness across crypto markets. Ethereum, XRP, and other altcoins have also recorded steep declines, underscoring the heightened risk environment.

Options Expiry Fuels Volatility

The quarterly options expiry, scheduled for September 26, is historically known to trigger major volatility in Bitcoin BTC markets. Traders expect price swings to intensify depending on whether the $109,000 support holds or breaks. Technical analysis shared by market commentator Ted (@TedPillows) highlights a crucial inflection point: a hold above $107,000 could open the door for a recovery toward $112,000, while a breakdown may expose Bitcoin to a decline toward $101,000.

A combined $21 billion in Bitcoin and Ethereum options expire today, with max pain levels at $110,000 for BTC and $3,700 for ETH. Source: @cas_abbe via X

The scale of open interest suggests that whichever side gains momentum could see outsized moves. Recent liquidations in the derivatives market, totaling more than $1.1 billion in long positions, add further stress, leaving traders braced for turbulence.

Macroeconomic Backdrop: Fed Rate Cuts in Focus

The price of Bitcoin is also moving in step with global macroeconomic conditions. U.S. economic data released this week painted a mixed picture. Revised second-quarter GDP growth rose to 3.8%, hinting at strong fundamentals, but core inflation measured by the PCE index held steady at 2.9% year-over-year in August.

Bitcoin (BTC) was trading at around $109,596, up 0.23% in the last 24 hours at press time. Source: Bitcoin Price via Brave New Coin

While the Federal Reserve is still expected to deliver two more rate cuts before year-end, uncertainty lingers over the pace and scale of monetary easing. Analysts say that tighter U.S. monetary policy could weigh on risk assets like Bitcoin, especially as institutional flows remain cautious. ETF outflows of $500 million this month highlight the hesitation among larger investors.

Bitcoin Dominance and Altcoin Weakness

Alongside price action, Bitcoin’s market dominance is showing signs of resurgence. Charts shared by analysts indicate a potential rise toward 61%–62%, levels not seen since 2017. Historically, higher dominance correlates with altcoin underperformance, which is already evident as Ethereum and other tokens lag behind.

Bitcoin dominance is rebounding toward the 61–62% range, signaling stronger BTC liquidity now but setting the stage for an eventual altcoin rally once it reverses. Source: @TedPillows via X

A September selloff erased more than $160 billion from the broader crypto market, reflecting a flight to relative safety in Bitcoin despite its recent pullback. With macroeconomic headwinds and geopolitical risks in play, investors appear to favor Bitcoin over riskier digital assets.

Outlook: Key Levels to Watch

The immediate focus remains on the $107,000–$109,000 support zone. A decisive close above these levels could strengthen Bitcoin’s chances of reclaiming $112,000 in the near term. However, failure to hold this range may expose the token to deeper losses, with downside targets extending toward $101,000.

Bitcoin is trading near key support, with potential to rally toward $112,000 if it holds or drop to $101,000 if it breaks. Source: Ted via X

Longer-term Bitcoin price predictions remain divided. While some analysts maintain bullish projections of $200,000 by 2025 based on institutional adoption and increasing ETF inflows, others caution that macroeconomic cycles may push Bitcoin’s peak into 2026.

For now, traders are closely monitoring the Bitcoin latest price as the $21 billion options expiry unfolds—a catalyst that could set the tone for Bitcoin’s next major move.