Bitcoin Stuck Between $85K and $90K? $24B Options Trap Expires in 2 Days
Bitcoin is range-bound between $85K and $90K due to dealer gamma exposure from options hedging, which expires on December 26.Summary
Bitcoin's price has been tightly constrained between $85,000 and $90,000, primarily due to mechanical hedging flows from market makers managing their gamma exposure in the options market. The "gamma flip" level is around $88,000. At $90,000, dealers short call options must sell Bitcoin to hedge rallies, creating resistance, while at $85,000, heavy put option positioning forces dealers to buy dips, providing support. This artificial equilibrium is reinforced by clustered liquidation levels in leveraged futures markets.
The key event is the December 26 options expiry, which involves approximately $23.8 billion in notional value—the largest in Bitcoin's history. Analysts suggest that about 75% of the current gamma profile will disappear, removing the forces pinning the price. Currently, dealer gamma exposure ($507 million) vastly outweighs daily ETF activity ($38 million), explaining why bullish catalysts have been ignored.
Once the expiry passes, volatility is expected to increase. If $85,000 support holds, a breakout toward $100,000 is structurally possible; conversely, a break below this level could accelerate downside movement as new positioning establishes itself in early 2026.
(Source：BeInCrypto)