According to on-chain data analyst Murphy from Chain Catchers, Bitcoin options with a total value of approximately $23.8 billion are set to expire on December 26. These options include quarterly, annual, and various structured products. The expiration is expected to trigger a clearing of risk exposure and a price reset in the Bitcoin derivatives market, potentially increasing market uncertainty at year-end. Prior to expiration, structural price constraints may be imposed.
Data reveals significant open interest near two key Bitcoin price levels: a put option with 14,674 BTC at $85,000 and a call option with 18,116 BTC at $100,000. This activity is driven not by retail investors but by large, long-term funds such as ETF hedging positions, Bitcoin treasury-holding companies, and major family offices holding substantial Bitcoin quantities. The $85,000 put option primarily serves as protection against downside risk with active buyers, while the large $100,000 call option volume reflects long-term funds’ willingness to accept potential upside beyond current cash flows and limited risk. The strategy of buying puts below and selling calls above narrows Bitcoin’s return distribution within a confined range.
This option boundary between $85,000 and $100,000 is expected to structurally influence Bitcoin prices, likely capping upside, supporting downside, and maintaining price fluctuations within this range until December 26. The substantial volume in the Bitcoin options market could significantly impact future price direction and market behavior.
Source: binance
