BTC set for a volatility shift from the $85k to $90k range as options expiry looms

Bitcoin has been trading tightly between $85,000 and $90,000 throughout December, a pattern attributed to derivatives mechanics, specifically high gamma concentration around these strike prices. Options writers dynamically hedge their positions, with put gamma near $85,000 acting as a floor and call gamma near $90,000 capping rallies, suppressing volatility. With $27 billion in options expiring on December 26th, this stabilizing effect will weaken. This expiry is notably large and skewed bullishly, evidenced by a put-call ratio of 0.38 and significant open interest concentrated in upside strikes between $100,000 and $116,000. The maximum pain point is at $96,000, suggesting the more likely outcome post-expiry is an upside resolution toward the mid-$90,000s rather than a sustained drop below $85,000.

(Source：CoinDesk)