Crypto Prices Today (Dec. 23): BTC, ETH, SUI, LINK Consolidate Ahead of $28B Options Expiry

Market prices in the cryptocurrency space showed little movement today as traders adopted a cautious approach ahead of an upcoming significant options expiry. Bitcoin, Ethereum, and several altcoins are experiencing minor declines, with overall market sentiment leaning towards fear.

Key Takeaways

Market Overview: The total crypto market cap dropped by 0.8% to $3.07 trillion.
Price Movements: Bitcoin is currently priced at $88,088 (down 0.7%), while Ethereum is at $2,987 (down 1%).
Options Expiry Insight: A historic options expiry involving $27-$28.5 billion in Bitcoin and Ethereum contracts is set for Dec. 26.
Market Sentiment: The Crypto Fear & Greed Index fell to 24, indicating extreme fear.
Volatility Concerns: Recent liquidations increased by 11%, showcasing growing market stress.

Chart showing crypto prices today consolidate

Market Conditions Remain Steady

Today, cryptocurrency prices have mostly stabilized, as traders are wary in anticipation of a record options expiry occurring later this week. The overall market capitalization of cryptocurrencies decreased by 0.8%, settling at $3.07 trillion. As of the latest update, Bitcoin is priced at $88,088, reflecting a 0.7% drop in the past 24 hours. Ethereum's price dipped by 1% to $2,987, while Chainlink decreased by 0.6% to $12.49. Sui saw a slight dip of 0.4%, bringing it to $1.45. Furthermore, smaller altcoins like Zcash, Monero, and Ethena experienced declines surpassing 5%.

The market's sentiment remains precarious, illustrated by a drop in the Crypto Fear & Greed Index, which fell one point to 24, indicating a state of extreme fear among traders. Additionally, data from CoinGlass indicated increasing stress in the market: 24-hour liquidations surged by 11% to reach $222 million, while total open interest in cryptocurrencies rose by 1.1% to $129 billion. Despite these fluctuations, the average market relative strength index is at 47, suggesting neutral momentum.

Options Expiry Influences Price Stability

Traders are currently preparing for a significant options expiry, with an estimated $27 billion to $28.5 billion in options contracts for Bitcoin and Ethereum set to expire on Deribit on December 26. Approximately $23.6 billion of these options pertain to Bitcoin, while Ethereum options total about $3.8 billion, marking this as the largest expiry event recorded on the platform.

Options provide traders the right to either purchase or sell assets at a predetermined price. When a considerable number of contracts gather around crucial strike prices, market makers typically hedge their exposure through trades in the spot market. This hedging may result in prices staying contained until the expiry occurs. Although underlying volatility has been increasing, price movements have remained relatively stable due to significant positions around major Bitcoin strike prices. Many traders are refraining from pursuing new trades, opting instead to observe market behavior post-expiry.

Short-Term Outlook Affected by Low Liquidity

The holiday season is introducing another layer of caution among traders, as December typically experiences lower trading volumes. Many traders reduce their exposure while funds finalize their accounts. Bitcoin has already seen a decline of approximately 28–30% since peaking above $125,000 in October, and the market has yet to adjust to this downturn effectively.

Global macroeconomic conditions have also negatively impacted risk appetites. The Bank of Japan recently raised its interest rate to 0.75%, tightening liquidity worldwide and applying pressure on risk assets, including cryptocurrencies. As a result, investors are gravitating toward safer assets; gold and silver have reached record highs, while concerns over the valuations of AI-related tech stocks have led to declines in the U.S. equity market.

In the near term, Bitcoin seems to be in a consolidation phase. While significant options positions persist, substantial price movements are unlikely. A notable price shift could occur post-December 26 when the pressure from hedging diminishes. Until then, price activity suggests a period of choppy trading, with potential downside risks mitigated near recent lows, unless liquidation pressures intensify.