Bitcoin Dips Below $88K as $23.6 Billion Options Expiry Looms

Bitcoin's price just slipped under a key psychological level—right as one of the year's largest options expiries hits the tape.

The Setup

A massive $23.6 billion in Bitcoin options is set to expire. That's not just noise; it's a gravitational force that can pull prices toward specific strike levels as traders scramble to hedge or unwind positions. The market's pre-expiry jitters are showing.

Why It Matters

Options expiries don't create new market direction, but they often accelerate existing momentum. A dip below $88,000 ahead of the event signals where the smart money is placing its short-term bets. It's a classic liquidity shakeout—flushing out weak hands before the next potential leg up.

Looking Ahead

Watch for volatility compression after the expiry clears. Large-scale settlements like this often act as a pressure release valve, setting the stage for the next clean trend. The real move typically comes in the 24-48 hours after the paperwork is done, once the market's structural overhang is gone.

Remember, in traditional finance, they call this 'price discovery.' In crypto, we call it Tuesday. The digital gold narrative remains intact—a little options-driven turbulence never grounded a rocket.

Bitcoin price has slipped below the $88,000 level after climbing to $92,000, putting traders on alert. On Friday, December 26, Bitcoin faces the biggest single-day options expiry in market history, with roughly $23.6 billion notional set to expire.

Now, traders everywhere are watching closely to see how this massive expiry will shake up the market, especially when market liquidity is thin.

$23.6 Billion of Bitcoin Options Expiry

Over $23.6 billion in bitcoin options expired on Deribit, making it one of the biggest expiry events in recent years. Around 268,000 option contracts settled at the same time, clearing a major amount of risk from the market in a single session.

Despite the size of the expiry, trader positioning still leans positive. The put-to-call ratio stands at 0.38, which means more traders were betting on higher prices than lower ones. 

The “max pain” level, where most option holders WOULD see losses, was near $96,000. This level often acts like a price magnet around expiry, even if briefly.

As of now, Bitcoin is trading close to $88,000, with its total market value around $1.75 trillion. 

Why This Bitcoin Options Expiry Matters

This expiry comes during a holiday week, when trading volumes are usually lower. With fewer buyers and sellers in the market, each large order carries more impact. That is why sharp moves can happen without any major news.

Historically, Bitcoin often trades sideways or choppy before large expiries, followed by a cleaner MOVE after contracts roll off. Once this open interest disappears, price action can reset quickly.

Because the notional value is so large, even small price moves NEAR expiry can trigger sudden swings as positions are closed or hedges are unwound.

Ethereum Also Faces Pressure

Adding to the risk, around $3.8 billion worth of ethereum options are also nearing expiry. Ethereum’s max pain level sits near $3,100. This suggests growing stress in the overall crypto market, not just Bitcoin.

As of now, the ethereum price is trading below $3000, staying below the key pain level.

Despite the massive expiry, analysts expect the price to stay steady or see a small pullback as the market adjusts after this large expiry.