Bitcoin slips as record $28B Boxing Day options expiry becomes key volatility driver: analysts

Bitcoin traded below $90,000, continuing a pattern of failing to sustain upside pushes, while other major cryptocurrencies like Ether and Solana also declined, pulling the total crypto market cap back to $3 trillion. Analysts note a defensive market tone where rallies lack follow-through. The primary catalyst for current price action is the looming record options expiry on Boxing Day (Friday), involving approximately $23.7 billion in BTC options and $28.5 billion combined for BTC and ETH, double last year's figure. Despite the scale, the market is described as orderly, with positioning showing residual optimism for a Santa rally. Traders are currently closing out risk, leading to thinning liquidity and elevated squeeze risk. Analysts suggest current swings are more mechanical than fundamental, expecting mean reversion in January when market participation returns. This crypto weakness contrasts with gold surging to a new record, which analysts attribute to returning macro hedging demand amid political uncertainty, such as the upcoming announcement of the next Federal Reserve chair.

(Source：The Block)