Bitcoin is back to $105,900 after the Israel-Iran ceasefire on Tuesday. However, sudden panic and FUD from newer Bitcoin whales are increasingly fueling volatility for the largest cryptocurrency.
CryptoQuant highlights large realized losses by new whales as a key driver. These investors have sold Bitcoin aggressively under pressure, amplifying market downturns.
How New Whales Drive Bitcoin’s Recent Price Swings
Between June 14 and June 22, whales realized approximately $228 million in Bitcoin losses, according to CryptoQuant analyst JA Maartunn. A significant spike occurred on June 17, with $95 million in losses in a single day.
Most of these losses—nearly $85 million—came from new whales, compared to only $8.2 million from older whale investors.
Another notable spike appeared on June 22, totaling $51 million, more evenly split between new and old whales.
New whales, who recently entered at higher price levels, appear more prone to panic selling amid geopolitical tensions. Their rapid exits intensify price swings and reinforce resistance at critical levels, particularly near $111,000.
Exchange Whale Ratio Shows Selling Pressure
Further supporting this trend, CryptoQuant’s Exchange Whale Ratio remained elevated through much of June.
This indicator is a measure of whale activity on exchanges. A high ratio indicates whales actively depositing Bitcoin to exchanges, typically ahead of selling.
Data shows this ratio rising around Bitcoin’s attempts to break above $110,000. Whales appeared to prepare sell orders at this level, limiting potential upward momentum.
The ratio briefly fell as Bitcoin dipped below $102,000, then climbed again when prices rebounded toward $105,900.
Newer whale investors seem especially sensitive, reacting quickly to negative headlines.
Such rapid selling triggers further volatility. Leveraged traders face margin calls, amplifying price declines and hindering sustained upward momentum.
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.
Welcome to the Asia Pacific Morning Brief—your essential digest of overnight crypto developments shaping regional markets and global sentiment.
Grab a green tea and watch this space. Trump administration officials hold more than $193 million in crypto stakes. House crypto bills drive record stock highs. Korea’s Upbit faces a potential $137 billion penalty for 9.57 million violations.
Trump Officials Hold Millions in Crypto
Nearly 70 Trump officials hold cryptocurrency stakes worth millions, according to a report by The Washington Post. President Trump himself holds at least $51 million in digital assets. Vice President Vance commands bitcoin reserves worth up to half a million dollars.
Seven Cabinet members maintain crypto wallets with significant holdings. Health Secretary Kennedy leads with five million in cryptocurrency investments. Justice Department prosecutors have reduced their pursuit of cryptocurrency crimes.
Trump administration officials hold millions in Crypto. Source: Washington Post
Tech executives like Scott Kupor and David Fogel joined the administration ranks. Ambassadors including Ken Howery and Tilman Fertitta, possess substantial portfolios. PayPal founder Howery holds a minimum of $122 million.
Biden administration officials reported zero cryptocurrency holdings in contrast. Trump’s era marks cryptocurrency achieving unprecedented governmental legitimacy. Digital asset values have doubled recently across markets.
Crypto Stocks and Digital Assets Rise on Bills
House passes crypto bills sparking massive stock surge. Coinbase climbs 3.15% to $410.75, hitting fresh record highs. Circle Internet Group gains 0.81% reaching three-week peaks.
Robinhood Markets jumps 2.13% above $105 breaking previous records. Galaxy Digital Holdings soars 7.38% as investors celebrate regulatory clarity. PayPal Holdings adds 1.22% benefiting from crypto momentum.
Crypto Stocks Performance
Ticker
Company
Price
Change
MSTR
Strategy, Inc.
$451.34
-1%
COIN
Coinbase Global, Inc.
$410.75
3.15%
HOOD
Robinhood Markets, Inc.
$105.45
2.13%
PYPL
PayPal Holdings, Inc.
$73.86
1.22%
CRCL
Circle Internet Group, Inc.
$235.08
0.81%
XYZ
Block, Inc.
$70.73
2.46%
NTHOL
Net Holding A.S.
$46.92
3.12%
GLXY
Galaxy Digital Holdings
$35.79
7.38%
MARA
Marathon Digital Holdings, Inc.
$19.97
2.73%
MTPLF
Metaplanet
$9.29
1.2%
RIOT
Riot Platforms, Inc.
$13.33
6.05%
CLARITY Act targets crypto market structure oversight framework. GENIUS Act creates comprehensive stablecoin regulation guidelines nationwide. The Senate already cleared the stablecoin bill last month.
Bitcoin hovers around $119,000, showing minimal daily movement. Ethereum remains stable at $3,480 despite equity optimism. XRP surges 15% approaching its 2018 record high.
Market capitalization exceeds $100 billion for leading exchanges. Digital asset investment firms benefit from legislative progress. Regulatory clarity drives unprecedented stock market performance.
Upbit Could Face $137 Billion Fine
South Korean Lawmaker Min Byung-duk revealed that Upbit could face maximum penalty. South Korea’s largest crypto exchange violated regulations 9.57 million times. Financial Intelligence Unit found ten different violation categories previously.
Know Your Customer violations reached 9.34 million cases alone. Upbit reused old identification images instead of collecting new ones. This basic compliance failure occurred nine million separate times.
Current sanctions include a three-month partial business suspension only. Ten executives and employees received disciplinary actions recently. However, financial penalties have not been imposed yet.
Agricultural Bank received 129.6 million KRW fine for twelve violations. IM Bank paid 4.5 million KRW for single regulatory breach. Upbit’s violations dwarf traditional banking institution cases significantly.
Maximum penalties could reach 183 trillion KRW, equivalent to $137 billion, under current law. This amount exceeds most national government budgets worldwide.
Meme coins are observing a strong start to the week with their collective value rising 9.5% to reach $90.5 billion. Some of these coins have posted sharp gains over the past week, and others look poised to do the same in the coming days.
BeInCrypto has analysed three meme coins for investors to watch and the direction in which they’ll be heading.
Pudgy Penguins (PENGU)
PENGU price has surged 31% in the past week, currently trading at $0.039. The meme coin is inching closer to its all-time high of $0.046.
Strong bullish sentiment and market participation are fueling this rally, signaling that PENGU could soon retest resistance levels if momentum remains intact.
The meme coin is now just 18.7% away from hitting its record high. A Golden Cross pattern formed last week adds to the bullish outlook. If PENGU successfully flips $0.040 into a stable support level, the rally could continue, pushing the altcoin higher toward reclaiming its historical peak.
For token TA and market updates: Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
However, downside risks remain. If investors begin booking profits, selling pressure could drag PENGU lower. The critical support level of $0.029 will come into play.
Losing this support could halt the upward trend and invalidate the optimistic price projection in the near term.
Milady Cult Coin (CULT)
CULT is gradually gaining bullish momentum after a 53% surge over the past week, currently trading at $0.00106. This rally marks a potential breakout phase, with the meme coin now eyeing the critical resistance at $0.00110.
Sustained buying interest is supporting CULT’s climb toward a stronger market position.
Technical indicators are leaning bullish. The Parabolic SAR sits below the candlesticks, signaling an active uptrend. If CULT maintains this trajectory with backing from the broader crypto market, it will likely breach $0.00110.
This would set the stage for a further rise toward $0.00124, reinforcing the bullish sentiment surrounding the asset.
However, the risk of a reversal remains. Profit-taking by short-term investors could stall CULT’s rally. If selling pressure intensifies, the meme coin might lose momentum and fall to support at $0.00087.
A breach below this level could push CULT even lower to $0.00072, invalidating the current bullish outlook.
Osaka Protocol (OSAK)
OSAK emerged as one of the top-performing meme coins this week, soaring 81% in the last seven days. Currently trading at $0.0000002077, the altcoin has captured investor attention with strong momentum.
Its recent price surge reflects increasing demand and growing optimism among retail traders in the meme coin sector.
The Parabolic SAR indicator sits below the candlesticks, signaling a continuation of the bullish trend. A successful breach above $0.0000002101 could confirm further upside potential.
If this happens, OSAK could rally toward $0.0000002340, providing substantial returns and reinforcing bullish sentiment among investors looking for short-term gains.
However, if OSAK fails to break through the $0.0000002101 resistance or encounters bearish pressure, it may retreat. A drop to $0.0000001646 would nullify the current bullish thesis, signaling a trend reversal.
