Record Bitcoin options expiration could free BTC price from the $87,000 range

Source: Yellow Original Title: Record Bitcoin Options Expiration Could Free BTC Price from $87,000 Range

Original Link: Bitcoin (BTC) remained close to $87,000 on December 24 before a record options expiration event that could determine the short-term price direction.

Approximately $23.6 billion in Bitcoin options contracts are set to expire on Friday on Deribit, representing over 50% of the exchange’s total open interest.

The expiration includes roughly 300,000 Bitcoin options contracts along with 446,000 options from BlackRock’s iShares Bitcoin Trust.

Additionally, $3.8 billion in Ethereum options expire simultaneously, bringing the total cryptocurrency options liquidation to $27.4 billion.

What happened

Trading firm QCP Capital noted that Bitcoin has experienced 5‑7% price swings during past holiday periods, often linked to year-end options expirations rather than fundamental catalysts.

The current expiration marks the largest event of its kind in cryptocurrency market history.

Deribit data shows that the “max pain” price level is at $96,000, where the highest number of options contracts expire worthless.

The put‑call ratio of 0.38 indicates a strong tilt toward calls, suggesting traders remain bullish on Bitcoin’s medium-term prospects.

QCP analysts highlighted that approximately $1.2 billion in open interest is clustered at the $85,000 strike price for puts.

Market observers have described December’s large expiration as a sort of “cap” on Bitcoin’s price action throughout the month.

Crypto derivatives analyst David Eng previously stated that options positioning creates artificial price suppression that should dissipate after liquidation.

Eng predicted an initial target of $100,000 after expiration once structural pressure eases.

Bitcoin has traded within a narrow range of $85,000–$90,000 for several weeks.

Why it matters

The massive expiration coincides with reduced liquidity due to the holidays, which could amplify post-liquidation movements.

Market makers hedge options positions by buying or selling Bitcoin, creating mechanical pressure on the price that keeps it near key strike prices until contracts expire.

Traders are watching whether large December $85,000 puts are rolled over to January or closed after liquidation.

The outcome could indicate whether bearish positioning softens or intensifies heading into 2026.

Meanwhile, gold hit record highs above $4,449 per ounce this week, while Bitcoin remained range-bound.

Some analysts forecast a capital rotation from precious metals into cryptocurrencies once Bitcoin breaks resistance.

Bitcoin’s implied volatility dropped to 45% from 63% in November, suggesting traders expect manageable swings despite the record liquidation.