Since entering December, the volatility of cryptocurrencies, led by Bitcoin, has significantly increased. On December 18, Bitcoin first broke $108,000, setting a new historical high; on December 19, Bitcoin entered a high-position plunge mode, dropping below $100,000 during the day; on December 20, Bitcoin continued to plunge, falling below $93,000 during the day. As of around 21:00 on the 20th, within 24 hours, the number of liquidations across the cryptocurrency network exceeded 420,000, with a total liquidation amount reaching $1.4 billion. In the following days, Bitcoin's price continued to fluctuate widely between $92,500 and $99,900, during which many more people were liquidated.
This Friday, the largest scale of Bitcoin options contracts in history will expire, with a total value of $14 billion, which could trigger severe market volatility. According to data released by Deribit Exchange CEO Luuk Strijers, the ratio of put options to call options for this expiring contract is 0.69, meaning there are 7 put options for every 10 call options. Additionally, the number of expiring contracts is double that of the contracts expiring in March 2025.
