The $10 billion Bitcoin options expiration represents the largest derivatives event of 2025, creating potential for significant price swings. Market makers are hedging positions across the $95,000-$105,000 strike price range, creating technical support and resistance levels. Traders are closely watching gamma exposure levels that could amplify moves in either direction.
Historical patterns suggest increased volatility typically precedes major options expiries as participants adjust positions. The current concentration of call options at $100,000 indicates many investors remain bullish despite recent price consolidation. However, put options at $95,000 show growing hedging activity from institutional players.
Post-expiry, analysts expect reduced open interest could lead to clearer price discovery. Some traders anticipate a volatility squeeze that might resolve Bitcoin’s prolonged consolidation phase. The event serves as a critical test for institutional derivatives markets’ ability to handle large-scale crypto options settlements.
