Bitcoin (BTC) Options Expiry Fuels Volatility Spike

Bitcoin 2025-12-29 09:36

Bitcoin (BTC) Options Expiry Fuels Volatility Spike

Key Notes

  • The rally is not yet confirmed, noting Bitcoin price must reclaim and hold above $90,500.

  • In Q1 2026, BTC might break out of the compression phase, triggering 5-10% swings.

  • The upside target remains $100,000 if resistance breaks, and the downside risk is toward $80,000. .

Bitcoin price is once again showing volatility. On December 26, it spiked 1.63% to more than $89,100, only to hover around $88,500 later.

The latest bounce comes ahead of the $28 billion Friday options expiry. Experts believe that investors should stay vigilant at this point and watch for proper breakout signals before making a fresh entry.

Bitcoin Price Shows Strength Ahead of Options Expiry

Popular crypto analyst Ardi noted that the Bitcoin price move to $89,100 comes amid a major short-covering ahead of the Dec. 26 weekly and monthly options expiry. As per the analyst, the first leg of the upside was due to the closing of short positions.


However, the second leg of the upside shows strength and reflects genuine demand, with high-volume buyers stepping in. The daily trading volume for has surged 36% to $30 billion, indicating bullish trader sentiment.

Bitcoin (BTC) Options Expiry Fuels Volatility Spike

Bitcoin price surge | Source: TradingView

Despite the strong Bitcoin price action, Ardi cautioned that the move does not yet confirm a sustained

Bitcoin options expiry | Source: Deribit

Bitcoin Price Prediction Today

Against investors’ expectations, 2025 has been disappointing, especially in Q4, with Bitcoin likely to end the year with negative returns. Market experts are now looking to BTC’s performance in Q1 2026 while hoping for a bounce back.

Crypto market analyst Daan Crypto Trades said the Bitcoin price is entering a compression phase that could lead to a decisive move in the coming weeks. According to the analyst, the ongoing compression increases the likelihood of a larger directional move.


He added that January could be a key period in determining Bitcoin’s next major trend. Daan highlighted $94,000 as a critical resistance level. A sustained breakout above this zone, he said, would likely open the door for a move back toward $100,000 and higher.

On the downside, the analyst warned that a breakdown below $80,000 would shift the outlook.

Share to:

This content is for informational purposes only and does not constitute investment advice.

Curated Series

SuperEx Popular Science Articles Column

SuperEx Popular Science Articles Column

This collection features informative articles about SuperEx, aiming to simplify complex cryptocurrency concepts for a wider audience. It covers the basics of trading, blockchain technology, and the features of the SuperEx platform. Through easy-to-understand content, it helps users navigate the world of digital assets with confidence and clarity.

Unstaked related news and market dynamics research

Unstaked related news and market dynamics research

Unstaked (UNSD) is a blockchain platform integrating AI agents for automated community engagement and social media interactions. Its native token supports governance, staking, and ecosystem features. This special feature explores Unstaked’s market updates, token dynamics, and platform development.

XRP News and Research

XRP News and Research

This series focuses on XRP, covering the latest news, market dynamics, and in-depth research. Featured analysis includes price trends, regulatory developments, and ecosystem growth, providing a clear overview of XRP's position and potential in the cryptocurrency market.

How do beginners trade options?How does option trading work?

How do beginners trade options?How does option trading work?

This special feature introduces the fundamentals of options trading for beginners, explaining how options work, their main types, and the mechanics behind trading them. It also explores key strategies, potential risks, and practical tips, helping readers build a clear foundation to approach the options market with confidence.

What are the risks of investing in cryptocurrency?

What are the risks of investing in cryptocurrency?

This special feature covers the risks of investing in cryptocurrency, explaining common challenges such as market volatility, security vulnerabilities, regulatory uncertainties, and potential scams. It also provides analysis of risk management strategies and mitigation techniques, helping readers gain a clear understanding of how to navigate the crypto market safely.