Bitcoin May Face Volatility Around Options Expiry—Here's Why

According to market analysts, BTC could remain locked in the $85,000 to $90,000 range heading into the end of the month. The key catalyst? A massive options expiry event scheduled for December 26.

The numbers are striking: roughly $415 million in dealer gamma exposure is set to roll off—that's 67% of the total gamma positioning in the market. When dealers unwind such concentrated positions, it typically creates sharp price swings as they rehedge their flows.

What does this mean for traders? If history is any guide, the period between now and the expiry date could see elevated volatility. Whether Bitcoin breaks above $90K or finds support above $85K will largely depend on which side of the gamma barrier the market approaches first. Either scenario could spark significant moves as options dealers adjust their hedges.