Deribit Exchange’s Record $28.5B Options Expiry Sparks Crypto Market Dip, Raoul Pal Sees Buying Opportunity

Global crypto markets experienced a downturn, with Bitcoin slipping below $88,000 after briefly surpassing $90,000. ethereum also retreated under $3,000, while most large-cap altcoins traded lower. The decline is partly attributed to the impending expiry of over $28.5 billion worth of Bitcoin and Ethereum options on Deribit, the largest in the exchange's history.

Such expiries often heighten short-term volatility as traders adjust positions. Bitcoin's "maximum pain" point at $96,000 favors options sellers, while put interest around $85,000 could exacerbate selling pressure. U.S. spot Bitcoin ETFs recorded net outflows of $142 million on December 22, adding to the downward momentum.

Market sentiment soured further as the crypto Fear and Greed Index dropped to 29, signaling fear. Altcoin dominance momentum hit an all-time low, reflecting waning appetite for riskier tokens. Despite the pullback, Raoul Pal, founder of Real Vision, views the dip as a buying opportunity rather than the start of a sustained downtrend.