Bitcoin Options Expiry December 26: Max Pain, Volatility

A record $23 billion worth of Bitcoin options are set to expire on Friday, December 26, marking the largest BTC options expiry ever recorded.

With prices hovering close to the max pain level and market liquidity remaining thin, conditions are in place for heightened volatility in Bitcoin’s price action.

Data from CoinGlass shows a strong buildup of call options at higher strike prices, signaling that many traders are betting on further upside.

At the same time, put options are concentrated at lower strike levels, highlighting important support zones that the market is watching closely. Together, this positioning suggests traders are bracing for a sharp move as the expiry approaches.

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Bitcoin Options Expiry on Dec. 26: What It Means for the Market

Bitcoin is heading into one of its most important derivatives events to date, with a massive options expiry scheduled for December 26.

Market data shows the max pain level—the price point where options traders would face the greatest losses—sitting near the upper end of Bitcoin’s current trading range. This positioning suggests the market is finely balanced going into the expiry.

The total value of contracts set to expire far exceeds figures from previous years, making this event one of the largest and most impactful Bitcoin options expiries on record.

Analysts note that the put-to-call ratio is tilted in favor of call options, indicating traders are largely positioning for upside potential rather than hedging against downside risk.

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At the time of writing, Bitcoin was trading below its recent highs. Historically, major options expiries tend to increase short-term volatility, and this event is unlikely to be different.

Once contracts expire and open interest resets, sharp price movements often follow as traders adjust positions.

Additional volatility could emerge from the unwinding of hedges and the closing of large options positions near expiry. This effect may be amplified by the timing of the event, as it falls during a holiday week when market liquidity is typically lower.

In such conditions, relatively large trades can have an outsized impact on price movements.

Overall, the scale of this expiry highlights the growing role of institutional participants in the cryptocurrency market. As derivatives activity continues to expand, options flows are playing an increasingly important role in shaping Bitcoin’s short-term price action.

FAQs

Q: When is the next major Bitcoin options expiry?
A: The next major Bitcoin options expiry is scheduled for December 26, 2025, marking one of the largest BTC options expiries in history.

Q: What is the max pain level?
A: The max pain level is the price at which the greatest number of options contracts would expire worthless, causing maximum losses for option holders. It currently sits near the upper end of Bitcoin’s trading range.

Q: How much is set to expire in Bitcoin options?
A: A record $23 billion worth of Bitcoin options contracts are set to expire, exceeding previous years and highlighting the significance of this event for the market.

Q: What does the put-to-call ratio indicate?
A: The put-to-call ratio shows more call options than puts, meaning traders are largely positioning for upside gains rather than hedging against potential declines.

Q: Why could volatility increase around expiry?
A: Volatility can spike due to traders closing positions and unwinding hedges, combined with lower liquidity during the holiday week, which can amplify price swings.