At the close of the month, $7.8 billion worth of bitcoin options will expire on the Deribit exchange.

Bitcoin (BTC) options worth $7.8 billion are set to expire by the end of the month, and with the price of the largest cryptocurrency well above the “max pain point,” some market makers might try to push prices lower to maximize their profits.

Data from Deribit, the leading decentralized options exchange, shows that about $6 billion of these options are poised to expire out of the money, meaning these options will expire without value. Half of these are put options, which allow holders to sell BTC at a specific price within a set timeframe.

“The max pain level for this expiry is pegged at $98k, with considerable market dynamics expected to influence price changes in the coming week,” said Deribit CEO Luuk Strijers. “With the rescission of SAB 121, which now allows banks to hold bitcoin, we could see more institutional flows. Additionally, there’s growing speculation about a potential bitcoin strategic reserve announcement, adding more anticipation to the market.”

The majority of the put options likely reflect hedging against downside risk or bearish positions placed amidst uncertainty regarding President Donald Trump’s inauguration. The max pain point is where the option buyers face the highest losses, while market makers typically make the most profit. As the expiry date approaches, the price often gravitates towards this level, so $98,000 will be an important price to track.

“Next week’s BTC options expiry is noteworthy, with roughly 74,000 contracts expiring,” Strijers added. “The total BTC options open interest is at $28 billion, with $7.8 billion due to expire. Around 22.6% of these contracts are in-the-money (ITM), which could trigger delta hedging flows. At the same time, the Deribit Volatility Index (DVOL) is hovering at 60, in line with the year-end levels.”

DVOL tracks bitcoin’s implied volatility (IV), and CoinDesk research reveals that IV spiked to its highest level since August, driven by bitcoin’s surge to record highs.