Bitcoin Anticipated to Rise After Record $24 Billion Options Expiry

Bitcoin left traders feeling frustrated on Christmas Eve, showing stagnant price movements while gold and silver reached record highs.

Key Takeaways

Bitcoin is currently experiencing a “waiting game” as traders focus on precious metals.
Analysts expect a substantial options expiry event to potentially lead to a price rise for Bitcoin.
Following a historic high of $4,500 for gold, the market dynamics are shifting.

Bitcoin Anticipated to Rise After Record $24 Billion Options Expiry

Bitcoin Targets $100,000 Following Expiry

According to data from TradingView, Bitcoin (BTC) was hovering around $87,000 as the Christmas holidays approached.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

This period is anticipated to bring its own volatility, especially with the record options expiry event scheduled for Friday. A trading firm, QCP Capital, pointed out that historically, Bitcoin tends to see price swings of 5% to 7% during the Christmas season, often closely related to year-end options expiries rather than new market influences.

Total BTC options open interest (screenshot). Source: CoinGlass

QCP noted that this expiry event involved over half of the open interest on major exchange Deribit, with a critical “max pain” level set at $95,000. “By the end of the day on Friday, a clearer view of the downside positioning will emerge, particularly concerning whether the significant December 85k Puts will be rolled over, closed, or replaced further down the line,” they explained.

Market participants have been paying attention to this expiry for a considerable time. Earlier this month, executive David Eng referred to the event as a factor that could restrict Bitcoin’s price from rising. “Before the expiry, Bitcoin appears weak and uninteresting. Afterward, the dynamics will change,” he communicated to his followers on X, setting an initial target of $100,000.

Bitcoin's “Waiting Game” Amid Rising Stocks and Gold

As the market continues, patience among traders is dwindling.

Related: Bitcoin's lack of an explosive year-end price suggests no major crash in Q1: Pomp

“Bitcoin has stalled between $85,000 and $90,000 for several weeks. It’s a waiting period,” commented crypto trader and analyst Michaël van de Poppe on Tuesday. He suggested that stocks should first establish a local peak before funds could flow back into cryptocurrencies, a stance he also applied to precious metals.

BTC/USD four-hour chart with RSI data. Source: Michaël van de Poppe/X

As previously reported by Cointelegraph, gold and silver have been finding their price levels through the week, with gold (XAU/USD) reaching an all-time high of $4,500 per ounce. In response to Cointelegraph's coverage, market commentator Garrett argued that “the upward trend in silver, palladium, and platinum appears to be a short squeeze and isn't sustainable.”

XAU/USD one-hour chart. Source: Cointelegraph/TradingView