On December 26th, approximately $23.6 billion worth of Bitcoin options will expire, marking the largest expiration in history.
Currently, BTC is fluctuating between 85,000 and 90,000 due to a large concentration of options in this range, which causes market makers to hedge by:
- Selling spot when the price approaches or exceeds 90,000 to suppress the price
- Buying spot below 85,000 to support the price
This causes the trend to be "locked" within the range.
After the expiration on 12/26, the hedging pressure will disappear, and volatility is expected to increase. The price may break out of the range, moving either upward or downward.
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On December 26th, approximately $23.6 billion worth of Bitcoin options will expire, marking the largest expiration in history.
Currently, BTC is fluctuating between 85,000 and 90,000 due to a large concentration of options in this range, which causes market makers to hedge by:
- Selling spot when the price approaches or exceeds 90,000 to suppress the price
- Buying spot below 85,000 to support the price
This causes the trend to be "locked" within the range.
After the expiration on 12/26, the hedging pressure will disappear, and volatility is expected to increase. The price may break out of the range, moving either upward or downward.