DEC. 23 CRYPTO SNAPSHOT: BITCOIN, ETHEREUM, SUI, LINK CONSOLIDATE AHEAD OF $28B DERIVATIVES EXPIRY
Crypto prices were mostly flat as traders remained cautious ahead of a record-sized options expiry scheduled for later this week. The total cryptocurrency market value slipped 0.8% to $3.07 trillion.
Bitcoin was trading around $88,088 at the time of writing, down 0.7% over the past 24 hours. Ethereum fell 1% to $2,987, while Chainlink edged lower by 0.6% to $12.49 and Sui declined 0.4% to $1.45. Smaller altcoins such as Zcash, Monero, and Ethena recorded steeper losses of more than 5%.
Market sentiment remained fragile. The Crypto Fear & Greed Index slipped by one point to 24, keeping overall sentiment firmly in the extreme fear zone.
Data from CoinGlass pointed to rising market pressure beneath the surface. Liquidations over the past 24 hours increased 11% to $222 million, while total crypto open interest rose 1.1% to $129 billion. Despite the subdued price action, the average market relative strength index stood at 47, suggesting neutral momentum across the market.
Options Expiry Keeps Crypto Prices Range-Bound
Traders are bracing for a major options expiry, with an estimated $27 billion to $28.5 billion worth of Bitcoin and Ethereum contracts set to expire on Deribit on Dec. 26. Bitcoin options make up about $23.6 billion of that total, while Ethereum accounts for roughly $3.8 billion, marking the largest expiry in the exchange’s history.
Options allow traders to buy or sell assets at predetermined prices. When large numbers of contracts cluster around key strike levels, market makers often hedge their exposure through spot market activity. This hedging tends to limit price movement, keeping the market confined to a narrow range until the contracts expire.
ETH WHALES HOARD 934K TOKENS OVER THREE WEEKS, SMALL HOLDERS REDUCE HOLDINGS
Although underlying volatility has been increasing, price action has remained relatively tight due to heavy positioning around major Bitcoin strike prices. Many traders are choosing to stay on the sidelines, waiting to see how markets respond once the expiry passes.
Holiday Liquidity Adds to Market Caution
Seasonal factors are also weighing on short-term momentum. December typically brings thinner liquidity as traders reduce exposure and investment funds close their books for the year. Bitcoin remains roughly 28–30% below its October high above $125,000, and the market is still adjusting to that decline.
RUSSIA WILL NOT ACCEPT CRYPTO AS LEGAL TENDER, LAWMAKER CONFIRMS
Broader macroeconomic conditions have further dampened risk appetite. The Bank of Japan’s recent rate hike to 0.75% has tightened global liquidity, adding pressure to risk assets, including cryptocurrencies. At the same time, investors have moved toward safer assets, pushing gold and silver to record highs, while U.S. equities have slipped amid concerns over stretched AI-related tech valuations.
Short-Term Outlook: Consolidation Likely
In the near term, Bitcoin appears locked in a consolidation phase. As long as options positioning remains elevated, large price swings are unlikely. A clearer directional move may emerge after Dec. 26, once hedging pressure eases.
Until then, market signals point to choppy trading within a defined range, with downside risks likely limited near recent lows unless liquidation activity picks up sharply.
Conclusion
Crypto markets remained subdued on Dec. 23 as traders stayed cautious ahead of a record $28 billion derivatives expiry. Heavy options positioning, thin holiday liquidity, and fragile sentiment continued to cap price movement across major tokens, including Bitcoin and Ethereum. While volatility pressures are building beneath the surface, the market is likely to remain range-bound until the Dec. 26 expiry passes, after which a clearer directional move may emerge.
