Record $23 billion Bitcoin options expire on December 26, with maximum pain near current ranges and limited liquidity, paving the way for sharp BTC volatility.
Summary
- A record $23 billion worth of Bitcoin options expire on December 26, the largest number of BTC options ever
- The calls stack at high strikes, while the clusters are at lower levels, with maximum pain near current prices
- Limited holiday liquidity and unwinding positions could amplify BTC volatility as institutional flows recover.
A record $23 billion worth of Bitcoin options contracts expire on Friday, December 26, representing the largest BTC option expiration in history, according to market data.
Open interest data from CoinGlass shows a strong concentration of call options at high strike levels, indicating traders are positioning for price increases. Put options are clustered at lower strike prices, indicating that key support levels are being closely watched.
Bitcoin options expire on December 26
The Max Pain Level, defined as the price at which option holders would suffer the greatest losses, is at the high end of current trading ranges, according to the data.
The expiration total surpasses previous years’ figures, making it one of the most significant Bitcoin-related events ever.
The put-to-call ratio indicates that traders are looking for upside exposure rather than downside protection, market analysts said.
Bitcoin was trading below recent highs at the time of publication. The cryptocurrency typically experiences increased volatility prior to major option expirations, with sharp price movements likely once contracts expire and open interest resets.
Price swings around expiration can lead to volatile swings as traders close positions and unwind hedges, according to market observers.
The expiration date falls during a holiday week, when market liquidity is typically reduced, meaning large orders can impact prices significantly more than during normal trading periods.
The figures underline the growing institutional presence in the cryptocurrency markets, with derivatives flows increasingly influencing price movements, market analysts said.
