Bitcoin’s Holiday Drama 🙄 – Investment Policy

Right, so Christmas is looming, and apparently, the crypto world is having a bit of a wobble. It’s all very dramatic, honestly. Thin liquidity, less leverage…it’s like everyone’s suddenly remembered they have families or something. 🤷‍♀️ A rather enormous options expiry is threatening to stir things up, but, like, history suggests it’ll all be fine in January. Probably. Don’t quote me.

Bitcoin‘s Currently Stuck But Options Are Looming

Bitcoin’s looking a bit…beige, shall we say? Stuck in a trading range while gold‘s off galavanting to new highs. Traders are doing that thing where they disappear for mince pies and family arguments. This means liquidity is down, which is just perfect for some, shall we say, “interesting” price action. 😬

Apparently, people are less keen on taking risks these days. Bitcoin perpetual futures open interest had a bit of a wobble, and Ether followed suit. They’re not even trying to find new trades, they’re just closing everything down. Which, you know, sensible. But also creates a nice little setup for things to get…spicy. 🔥

Apparently, seasonality is a thing. Some clever people at QCP say bitcoin likes to do a 5-7% swing around Christmas. Not because of any actual news, just because…reasons. It’s all very festive. 🎄

Options Expiry – Oh Good

This week’s options expiry is a whopper. Like, 300,000 BTC options, which translates to about $23.7 billion. And then there’s another 446,000 tied to Blackrock’s spot bitcoin ETF (IBIT). You following? 🥴

Half of Deribit’s open interest is expiring on Boxing Day, apparently. Strikes are clustered at $85,000 and $100,000, with a “max pain” zone near $95,000. Which sounds…uncomfortable. And people are slowly getting less convinced about a price drop, but they’re not entirely sold on a rally either. It’s a lukewarm take, really. ☕

Stress indicators are calming down, which is nice. Bitcoin risk reversals are less…anxious than they were. People still like protection in case things go south, but things are generally looking slightly more…chill.

But honestly, history tells us this is all a bit of a flash in the pan. Unless something genuinely surprising happens, bitcoin’s probably going to potter around until January when everyone’s back from their holidays and vaguely remembers what they were doing. 🎉

FAQ 🎄

Why is Bitcoin all over the place before Christmas?
Because everyone’s gone home, which means less liquidity and less leverage, and therefore, more potential for…well, you know. Drama.
What’s the deal with the options expiry?
About $23.7 billion worth of BTC options and IBIT-related contracts are expiring which, if you’re into that sort of thing, could add to the chaos.
Are people betting on up or down?
It’s a bit of a shrug right now. Some cautious optimism, but mostly just…waiting.
Will things stay this way for long?
Probably not. History suggests it’ll all settle down after the holidays. Unless…well, we won’t dwell.

2025-12-25 08:58

Bitcoin‘s Currently Stuck But Options Are Looming

Options Expiry – Oh Good

FAQ 🎄

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