Bitcoin’s price faced downward pressure at the beginning of August, dropping to $114,337. This decline can be attributed to multiple factors, including broader market uncertainty stirred by Trump’s tariff wars.
However, one crucial factor appears to be alleviating: the impact of investor sentiment. Bitcoin’s price action is now more influenced by market conditions than investor panic.
Bitcoin Investor Selling Cools Down
This week, Bitcoin’s supply in profit dropped below the 95% threshold, which has historically indicated a market top. For over a month, Bitcoin’s supply remained within the 95% profit zone, signaling an overly bullish market.
Typically, this creates increased selling pressure as the market saturates with optimism. With the supply in profit now down to 92.5%, that pressure is starting to ease, potentially signaling a shift toward more neutral or positive momentum.
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The net position change on exchanges recently reached a four-month high, reflecting the effects of the market top conditions. The increase in exchange balances typically signifies higher selling activity, driven by the market’s inability to sustain bullish momentum.
However, this recent selling trend seems to be losing steam. The uncertainty surrounding upcoming events, such as Trump’s tariff decisions, is likely causing hesitation in the market.
With the selling pressure declining, Bitcoin could now enter a phase of consolidation. This provides an opportunity for BTC to recover its lost ground, especially as the broader market stabilizes.
Bitcoin Net Exchange Position Change Source: Glassnode
BTC Price Is Hanging On
Bitcoin’s price is currently at $114,337, facing bearish pressure. The Parabolic SAR is above the candlesticks, suggesting downward momentum. However, the 50-day exponential moving average (EMA) is still holding strong as support, indicating that broader market sentiment isn’t entirely negative. Bitcoin may continue to consolidate, finding stability above the $110,000 level.
Given the current factors, Bitcoin’s price is likely to consolidate within the $110,000 range for now. If Bitcoin can break through the $115,000 level and secure it as support, a potential rise to $117,261 is possible. However, surpassing $120,000 seems unlikely in the near future.
Should the market experience bearish pressures due to external factors like the upcoming tariff announcements, Bitcoin could face further declines. If it loses the $111,187 support, Bitcoin may fall to $109,476, with the potential for further weakness. If Bitcoin breaches $110,000, the bullish or neutral outlook could be invalidated.
Ethereum reached a notable milestone earlier this month when the US Securities and Exchange Commission (SEC) approved options trading for several spot exchange-traded funds (ETFs). The move is expected to increase liquidity, attract interest from institutional investors, and solidify Ethereum’s position as a major cryptocurrency.
Yet Ethereum’s smaller market cap relative to Bitcoin means it is also vulnerable to gamma squeezes, thereby increasing investor risks. BeInCrypto consulted an expert in derivatives trading and representatives from FalconX, BingX, Komodo Platform, and Gravity to analyze the potential impact of this new characteristic.
This week marked the official debut of options trading for spot Ethereum ETFs in the United States. BlackRock’s iShares Ethereum Trust (ETHA) was the first to list options, with trading commencing on the Nasdaq ISE.
Shortly after, a broader availability of options followed, including those for the Grayscale Ethereum Trust (ETHE) and the Grayscale Ethereum Mini Trust (ETH), as well as the Bitwise Ethereum ETF (ETHW), all of which began trading on the Cboe BZX exchange.
This move allows a wider range of investors, beyond crypto traders, to benefit from hedging and speculation opportunities on Ethereum’s price through options on familiar investment vehicles like ETFs without direct ownership.
The timing of this news is particularly positive, as Ethereum has been losing some ground in the market lately.
Options Trading to Bolster Ethereum’s Market Position
A significant decline in market confidence surrounded Ethereum this week, with BeInCrypto reporting its price had plummeted to its lowest point since March 2023. This drop coincided with a broader market downturn, worsened by Donald Trump’s Liberation Day.
Meanwhile, large Ethereum holders are increasingly selling off substantial amounts, putting downward pressure on their prices. Ethereum’s value has fallen sharply by 51.3% since the beginning of 2025, and investor confidence has waned, as evidenced by a decrease in addresses holding at least $1 million in ETH.
Holders with at least $1 million worth of ETH. Source: Glassnode.
With options trading now accessible to more traders, experts anticipate that Ethereum’s market position will improve.
“ETH’s been leaking dominance, stuck sub-17%. Options give it institutional gravity. It becomes more programmable for fund strategies. More tools mean more use cases, which then in turn means more capital sticking around,” Martins Benkitis, CEO and Co-Founder of Gravity Team, predicted.
This newfound accessibility of options trading will create additional opportunities for investors and the broader Ethereum ecosystem.
Greater Investor Access and Liquidity
The SEC’s approval of Ethereum ETFs in July 2024 was significant because it allowed traditional investors to enter the crypto market without directly holding the assets. Now, with options trading also available, these benefits are expected to be even greater.
The Ethereum ETF market will naturally become more liquid with increased participation through options trading.
High Trading Volumes and Hedging Demands
The SEC’s fresh approval of options trading for Ethereum ETF investors suggests that the market will likely initially experience a high trading volume. As a result, market makers must be prepared.
An increase in call options will require institutional market makers to hedge by buying more Ethereum to meet demand.
Ethereum will also secure a unique advantage, particularly in institutional trading, enhancing its perceived quality and driving optimism among key market participants.
“ETH just got a serious institutional tailwind. With options now in play, Ether is stepping closer to BTC in terms of tradable instruments. This levels up ETH’s legitimacy and utility in hedging strategies, narrowing the gap on Bitcoin’s dominance narrative,” Benkitis told BeInCrypto.
Yet, rapid surges in options trading could also have unintended consequences on Ethereum’s price, especially in the short run.
Will Investors Suffer a Gamma Squeeze?
As market makers rush to acquire more of the underlying asset in case of a higher volume of options calls, Ethereum’s price will naturally increase. This situation could lead to a pronounced gamma squeeze.
When market makers hedge their positions in this scenario, the resulting buying pressure would create a positive feedback loop. Retail investors will feel more inclined to join in, hoping to profit from Ethereum’s rising price.
The implications of this scenario are especially pronounced for Ethereum, considering its market capitalization is notably smaller than that of Bitcoin.
Retail traders’ aggressive buying of ETHA call options could compel market makers to hedge by acquiring the underlying ETHA shares, potentially leading to a more pronounced effect on the price of ETHA and, by extension, Ethereum.
“We believe option sellers will generally dominate in the long-run but in short bursts we could see retail momentum traders become massive buyers of ETHA calls and create gamma squeeze effects, similar to what we’ve seen on meme coin stocks like GME. ETH will be easier to squeeze than BTC given it is only $190 billion market cap vs BTC’s $1.65 trillion,” Joshua Lim, Global Co-head of Markets at FalconX, told BeInCrypto.
Arbitrage involves exploiting price differences for the same or nearly identical assets across different markets or forms. This is done by buying in the cheaper market and selling in the more expensive one.
According to Grant, traders will increasingly look for and exploit these price differences as the market for ETH options on different platforms develops.
While arbitrage activity is expected to refine pricing and liquidity within the Ethereum options market, the asset continues to operate under the shadow of Bitcoin’s established market leadership.
Will Landmark Options Approval Help Ethereum Close the Gap on Bitcoin?
Though Ethereum achieved a major landmark this week, it faces competition from a major rival: Bitcoin.
In late fall of 2024, options trading started on BlackRock’s iShares Bitcoin Trust (IBIT), becoming the first US spot Bitcoin ETF to offer options. Though not even a year has passed since the original launch, options trading on Bitcoin ETFs experienced strong trading volumes from retail and institutional investors.
According to Kadan Stadelmann, Chief Technology Officer of Komodo Platform, options trading for Ethereum ETFs will be comparatively underwhelming. Bitcoin will still be the cryptocurrency of choice for investors.
“Compared to Bitcoin’s Spot ETF, Ethereum’s ETF has not seen such stalwart demand. While options trading adds institutional capital, Bitcoin remains crypto’s first mover and enjoys a greater overall market cap. It is not going anywhere. It will remain the dominant crypto asset for institutional portfolios,” Stadelmann told BeInCrypto.
Consequently, his outlook does not include Ethereum’s market position surpassing Bitcoin’s in the immediate term.
“The once-promised flippening of Bitcoin’s market capitalization by Ethereum remains unlikely. Conservative and more-monied investors likely prefer Bitcoin due to its perceived safety compared to other crypto assets, including Ethereum. Ethereum, in order to achieve Bitcoin’s prominence, must depend on growing utility in DeFi and stablecoin markets,” he concluded.
While that may be the case, options trading doesn’t harm Ethereum’s prospects; it only strengthens them.
Can Ethereum’s Options Trading Era Capitalize on Opportunities?
Ethereum is now the second cryptocurrency with SEC approval for options trading on its ETFs. This single move will further legitimize digital assets for institutions, increasing their presence in traditional markets and boosting overall visibility.
Despite recent significant blows to Ethereum’s market position, this news is a positive development. Although it might not be sufficient to surpass its primary competitor, it represents a step in the right direction.
As investors get used to this new opportunity, their participation level will reveal how beneficial it will be for Ethereum.
The Pi Core Team issued a public call via email, encouraging Pioneers to voluntarily confront misinformation. They urged members to respond with fact-based content whenever and wherever they encounter false claims.
This call marks the team’s first public move against the many speculations and false information that have long existed in the Pi Network community.
The Fight Against Misinformation in the Pi Network Community
However, it also has a downside—the uncontrolled spread of misinformation among Pioneers.
To address this, the Pi Core Team recently emailed users suggestions on countering false information. The suggestions included publishing posts, leaving corrective comments, providing information from official sources, and reporting via a designated form.
“This effort is completely voluntary and not affiliated with or sponsored by the Core Team or Pi Network. There are no promised rewards—it’s simply an opportunity to contribute to the health and understanding of the Pi ecosystem,” the Pi Core Team said in the email.
Reactions on X were mixed. Some users appreciated the initiative, saying it could improve Pioneers’ knowledge and vigilance. Others criticized it, questioning why the team did not directly identify and debunk false news.
“It was always the project’s job to provide correct information and transparency to the media people. Now they want people to do this job for them too, for free!!” Pi supporter Jatin Gupta said.
GCV Supporters in the Spotlight After Pi Core Team’s Call
Following the Pi Core Team’s announcement, leaders of the Global Consensus Value (GCV) movement unexpectedly drew attention.
The movement dismisses Pi’s exchange price and calls for consensus on valuing Pi Network at $314,159—symbolically inspired by the mathematical number Pi.
This means GCV’s implied valuation for Pi could reach $31.4 quadrillion, far exceeding the current global GDP of about $100 trillion.
GCV leaders often inspire others through offline events and posts with arguments aimed at convincing people to agree on this unrealistic high value. These arguments typically claim Pi will become a stable global cryptocurrency at the GCV level.
Some Pioneers have reported “GCV scammers” after the Pi Core Team’s announcement.
“I’m fighting the gcv cult warrior, and gcv cult global ambassadors. All leaders of gcv ambassador don’t have any idea what’s happening in Pi Network—they are all blind,” one investor said on X.
The community’s reactions show a deep divide—between those who see Pi as an investment opportunity with acknowledged risks and those who view Pi as a life-changing, almost religious mission.
The Frankfurt am Main Public Prosecutor’s Office, in collaboration with the Central Office for the Combat of Internet Crime (ZIT) and the Federal Criminal Police Office (BKA), has shut down Germany-based cryptocurrency exchange eXch.
On April 30, law enforcement seized the exchange’s server infrastructure and approximately €34 million ($38.5 million) in crypto assets.
German Authorities Shut Down eXch
In a press release issued on May 9, the authorities revealed that the seized crypto assets included Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Dash (DASH). They also confiscated over eight terabytes of data.
“Once again, we have been able to seize millions of euros’ worth of illicit cryptocurrencies and shut down a digital money-laundering platform. The scale of these operations clearly shows that cybercrimes are being committed on an industrial level,” Carsten Meywirth, Head of the Cybercrime Department of the German Federal Criminal Police Office, said.
The press release emphasized that the platform was advertised on criminal forums. It openly stated that it did not implement anti-money laundering measures. Users remained anonymous, with no identity verification and no data storage, making eXch ideal for hiding financial transactions.
According to German authorities, eXch facilitated around $1.9 billion in cryptocurrency transfers since its launch. They suspect that the exchange received Bitcoin of criminal origin.
Moreover, it was allegedly laundering a significant portion of the $1.5 billion stolen from the hacked cryptocurrency exchange Bybit in February. The Bybit hack, attributed to North Korea’s Lazarus Group, is one of the largest cryptocurrency thefts in history. Hackers siphoned off over 400,000 ETH from the exchange’s cold wallet.
“eXch was used to launder hundreds of millions from the Bybit hack, Multisig hack, FixedFloat exploit, $243 million Genesis Creditor theft, and countless phishing drainer services over the past few years with refusal to block addresses and freeze orders,” blockchain investigator, ZachXBT, wrote on Telegram.
Amid the allegations surrounding Bybit’s funds, eXch announced its voluntary closure effective May 1. The exchange cited a hostile environment and the pressure from the ongoing transatlantic operation, which involved allegations of money laundering and terrorism, as key reasons for their decision to shut down.
“The goals we certainly never had in mind were to enable illicit activities such as money laundering or terrorism, as we are being accused of now. We also have absolutely no motivation to operate a project where we are viewed as criminals. This doesn’t make any sense to us,” the April 17 announcement read.
However, just one day before eXch’s closure, German authorities acted and seized it. They stated that they managed to secure numerous pieces of evidence and traces. For now, the Frankfurt Prosecutor’s Office has not released additional details on potential charges or arrests related to the operation.
