The post Bitcoin Price Braces for Whipsaw as Record $23B Options Expiry Threatens 2026 Volatility Spike appeared on BitcoinEthereumNews.com.

Key Insights: Bitcoin options worth $23 Billion set to expire on December 26 in the largest-ever expiry event. Implied volatility compressed to 44% across tenors as year-end positioning turned defensive. Post-expiry volatility is expected to spike as traders reposition ahead of January catalysts. Bitcoin price entered the final weeks of 2025 under mounting pressure as approximately $23 billion in Bitcoin (BTC) options contracts were set to expire on December 26. The record expiry threatened to amplify volatility heading into 2026, with traders positioning for significant price swings once year-end hedging mechanics reset. Glassnode highlighted on December 19 that spot Bitcoin remained trapped in its recent range despite the massive options expiry approaching. The combination of slowing participation, compressed volatility metrics, and defensive positioning suggested markets braced for contained price action through year-end before turbulence returned in January. Options activity cooled over the past month, with flows appearing lighter than in previous periods. The slowdown signaled lower conviction behind bullish narratives, though demand for put protection persisted. This created a defensive posture in the options market, even as Bitcoin price held above key support levels. Bitcoin Price: Volatility Metrics in Focus for Near-Term Action Implied volatility for Bitcoin price declined across the curve, indicating weaker demand for near-term hedges and upside leverage. Markets priced more contained price behavior as 2025 wound down. At-the-money implied volatility sat around 44% across tenors, down by more than 10 volatility points from recent highs. The compression in implied volatility reflected year-end dynamics where volatility sellers earned carry as IV declined. Bitcoin (BTC) Options ATM Implied Volatility | Source: Glassnode The one-week volatility risk premium remained positive since the latest FOMC meeting, favoring sellers who collected premium while hedging flows kept realized moves contained. Twenty-five delta skew remained in put territory, meaning puts traded richer than…

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Filed under: News - @ December 20, 2025 11:18 pm