Bitcoin: Expiration of $28 billion in options causes prices to plummet

A $28 billion wall. The Bitcoin market is in chaos, as the imminent expiration of a record $28 billion worth of options threatens to shake the cryptocurrency. According to analysts, this deadline, scheduled for December 26, can cause significant volatility. With the price of Bitcoin hovering around $88,000, speculation is rife about the impact of these options on the market.

Key points of this article:

• The Bitcoin market is under pressure due to the imminent expiration the expiration of options for a record amount of $ 28 billion, scheduled for December 26.
• This historic term has led to the expectation of significant volatility, as well as speculation about the potential impact on the price of Bitcoin.

Unprecedented expiration of options in the Bitcoin market Validity period option December 26 became a historical record, it was at stake 28 billion dollars . This colossal amount represents a significant market share and can cause significant price fluctuations. According to the data Glassnode this expiration is the largest on record, even surpassing the option expiration in June 2024 which has already reached record highs.

Options are financial contracts which give investors the right, but not the obligation, to buy or sell an asset for at a predetermined price by a certain date. In the case of Bitcoin, these options can be used to speculations on price fluctuations or for hedging from volatility.

Because bitcoin traded close 88,000 dollars traders are on high alert. Implicit volatility an indicator of market expectations regarding price fluctuations, is growing . Traders are waiting sharp movements, especially given that Bitcoin has recently shown signs of weakness.

Bitcoin price is highly volatile as December 26 approaches – Source: Coinmarketcap by JDC

Market under pressure and different strategies According to the data Greeks.Live an options data provider cited by the US financial press, disclosed an interest in bitcoin options reached a record high level. That means a lot contracts are still active, which can increase volatility after expiration date these options.

Faced with this situation, traders different strategies are used. Some are betting on growth bitcoin hoping that the cryptocurrency will recover after expiration date options Others, more careful bet on the downside, expecting pressure sellers .

Data Deribit options trading platforms, demonstrate high activity both in the put option market and in the call market. The key price levels are close to 90,000 USD for call options and 85,000 USD for put options that reflects market expectation.

The expiration of Bitcoin options on December 26 could be a turning point for the cryptocurrency. With $28 billion at stake, the market expects increased volatility. Whether Bitcoin goes up or down, one thing is certain: the coming days will be decisive for traders and investors.