📢 $14 Billion Bitcoin Options Expiring Soon: Increased Market Volatility, Altcoins May Rebound
As an important options expiration date approaches, the cryptocurrency market is preparing for a key phase of increased volatility.
On December 27, up to $14 billion in Bitcoin options will expire, which could reshape short-term price trends and impact investment strategies.
Analysts expect this event to intensify trading activity, leading to significant price fluctuations and increased market turbulence.
Currently, the open interest in Bitcoin options reflects traders' bullish outlook, with market sentiment leaning towards optimism.
However, the low trading volume and liquidity brought by the holidays may exacerbate price volatility.
The CEO of Deribit Exchange stated that this significant event could trigger a chain reaction due to the higher leverage levels in the market.
This Friday, options worth $4 billion in Bitcoin that are "in the money (ITM)" are expected to expire, which may be closed or rolled over, further leading to market volatility. If Bitcoin's price approaches $98,000, traders may feel the need to reassess their positions, potentially leading to a market correction.
GSR Portfolio Manager Simranjeet Singh noted that the open interest for Bitcoin and Ethereum will expire on January 31 and March 28, respectively, marking these dates as liquidity anchor points at the beginning of the new year.
Analysts also pointed out that the relatively high open interest in call options provides buyers with asymmetric upside potential, indicating that leverage is skewed upwards.
Deribit CEO Luuk Strijers mentioned that if significant downward momentum occurs, this positioning could increase the risk of a rapid snowball effect.
Although Bitcoin's recent stagnation may persist, the upcoming options expiration could serve as a trigger point for altcoins to surge.
Investors are focusing on attractive levels near $90,000 for Bitcoin, suggesting that altcoins may benefit from any potential correction in Bitcoin's price.
