Bitcoin Faces the Biggest Options Expiry in History on December 26

Bitcoin Options Expiry: Why December 26 Matters

$Bitcoin is approaching a major derivatives event, with the December 26 annual options expiry shaping up to be the largest in history.

According to the data shown in the chart, the total notional value of Bitcoin options expiring on December 26 exceeds $23.8 billion, surpassing previous yearly expiries by a wide margin.

For comparison:

• 2021: ~$6.1B
• 2022: ~$2.4B
• 2023: ~$11.0B
• 2024: ~$19.8B
• 2025 (Est.): ~$23.8B

This sharp increase highlights how rapidly institutional participation in Bitcoin derivatives has grown.

Institutional Risk Concentration Is Peaking

What makes this expiry especially important is the concentration of institutional risk. Large players holding options positions will need to:

• Close contracts
• Roll positions forward
• Or adjust hedges

Any of these actions can lead to sudden shifts in market positioning, especially if price starts moving toward key strike levels.

Expect Volatility Around Expiry

Historically, large options expiries often act as volatility catalysts, not because of fundamentals, but due to forced repositioning in the derivatives market.

With Bitcoin already trading in a tight range, this expiry could:

• Trigger sharp intraday moves
• Cause fake breakouts or breakdowns
• Increase short-term volatility even without major news

Traders should be cautious around December 26 and avoid overleveraging during this period.