Why Buy Bitcoin When Treasuries Pay 5%? | $18B Options Expiry Explained | Daily Crypto Deep Dive

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Why take the risk of owning Bitcoin when the US government is currently offering investors close to 5% on Treasury debt?

That is the question at the centre of today's Daily Crypto Deep Dive. We break down what Treasury yields actually are, why bond prices and yields move in opposite directions, and why a near-5% “risk-free” return creates serious competition for Bitcoin, stocks and other risk assets.

But there is a problem with the textbook argument: Bitcoin has been climbing anyway.

We look at why BTC has managed to remain strong despite elevated Treasury yields, what analysts at Barclays, Truist and Deribit are seeing in the market, and whether today's yield environment is genuinely a threat to the crypto rally.

Then we turn to one of the biggest events of the week: roughly $18 billion of Bitcoin and Ethereum options expiring on Friday.

We explain calls, puts, strike prices, open interest and max pain in plain English — including why an $18 billion expiry does not mean $18 billion of Bitcoin is suddenly going to be bought or dumped onto the market.

We also look at the huge concentration of Bitcoin calls around $85,000, $90,000, $95,000 and $100,000, why dealers may have been forced to buy Bitcoin as the price climbed, and what happens when those hedges begin disappearing after Friday's settlement.

Could volatility explode once the options book resets? Could Bitcoin continue higher if genuine spot demand replaces dealer hedging? Or will we discover that derivatives were supporting this rally more than investors realised?

This episode covers Treasury yields, Bitcoin's opportunity cost, the so-called risk-free rate, max pain, dealer gamma, options expiry and what all of it could mean for your crypto portfolio over the next few days.

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Nothing discussed in this episode is financial advice. Always do your own research and understand the risks before investing.