Bitcoin hovers around $87,000, with $27 billion in options contracts expiring during the holiday period when liquidity is low, causing the market to hold its breath.
(Background: The four-year cycle of Bitcoin is dead! Bitwise CIO: The crypto market has entered a ten-year endurance battle)
(Additional context: Galaxy Digital: After adjusting for inflation, Bitcoin has never actually broken above $100,000)

Table of Contents

• 270,000 options contracts expiring, long and short hedging intertwined
• CZ: Early market movements defined by sentiment
• Altcoins diverge, capital shifts to specific themes

The Christmas holiday just ended, and the cryptocurrency market remains cold. Early morning on December 26, Taipei time, Bitcoin (BTC) briefly dipped below $87,000 again, and before press time, it recovered to $87,282, down 0.42% in the past 24 hours.

Ethereum (ETH) also briefly fell below the $2,900 level, currently trading at $2,914, with the overall crypto market cap shrinking to approximately $3.023 trillion.

270,000 options contracts expiring, long and short hedging intertwined

It is noteworthy that today marks the largest crypto options expiration in history. According to data from options trading platform Deribit, about 270,000 BTC options will expire, with a notional value of $23.3 billion; including ETH, the total scale reaches $27 billion, double that of the same period last year.

The maximum pain point (Max Pain) for this expiration is at $95,000. If the price approaches this zone, open positions will face maximum losses. On the other hand, market makers hedge gamma risk by quickly buying and selling spot assets before expiration. During holidays with low liquidity, prices are prone to sharp spikes or drops.

CZ: Early market movements defined by sentiment

In response to market turbulence, Binance founder CZ (CZ) posted on X platform earlier, reminding the public to focus on FUD rather than the price itself. He stated:

Every time Bitcoin hits a new all-time high, do you ever think, “I wish I had bought earlier”?

Actually, those who bought early did not buy at the high, but during times filled with fear, uncertainty, and doubt.

Merry Christmas 🎄

When Bitcoin was ATH, have you ever thought, “I wish I bought bitcoins early”?

Guess what, those who bought early did not buy at ATH, they bought when there were fear, uncertainty and doubt.

Merry Christmas 🎄

— CZ 🔶 BNB (@cz_binance) December 25, 2025

CZ defines “early” as a low sentiment point rather than a specific time, implying that the current $87,000 zone is psychologically a discount level.

Altcoins diverge, capital shifts to specific themes

However, amid a sluggish market, some altcoins are defying the trend and rising. Data shows BIFI surged 78% in a single day, ZBT increased 55.2%, and 0G also soared 29.3%; meanwhile, METIS and BANANA respectively plummeted 12.8% and 12.05%. This reflects that, while the market remains cautious about mainstream coins, traders are still seeking short-term gains.

Currently, traders generally expect that after options expiration, as hedging positions are unwound, the market will enter a brief “re-pricing” vacuum period, during which the trend may become clearer. However, given the low trading volume during the holidays, analysts warn that within the next 48 hours, the probability of BTC experiencing short-term volatility of several thousand dollars significantly increases. Investors should manage leverage carefully and be aware of liquidity risks.