Bitcoin Options Hit Record $14 Billion, Signaling a Major Rally Could Be Imminent

The largest Bitcoin options expiry in history occurs today, with traders preparing for significant market moves. Over $14 billion has been invested in contracts set to expire on December 27, according to Deribit, a prominent crypto derivatives platform.

The most popular trade has been a $90,000 call option—a bullish bet that profits if Bitcoin reaches that price. Traders have funneled $730 million into these contracts.

A call option allows traders the right—but not the obligation—to purchase Bitcoin at a predetermined price on a future date. Should Bitcoin exceed $95,000, over $4 billion worth of these options will be “in the money,” meaning they can be exercised for a profit by selling Bitcoin at market prices above the preset value.

This massive options expiry could further destabilize an already volatile year-end for Bitcoin. Yet some investors interpret the record-breaking options volume as a bullish indicator for new all-time highs.

“If market makers are as exposed to Bitcoin as the volume suggests, we’re only weeks away from the next big move,” said prominent crypto investor Mike Alfred during a December 26 podcast. Alfred expects Bitcoin to climb from the low-$90,000 range to $120,000 or higher after the options expiry.

A Market in Waiting

The optimism seen after Donald Trump’s re-election in November has waned due to the Federal Reserve’s hawkish outlook for 2025. Many investors offloaded their Bitcoin positions, leading to a market lull.

Bitcoin and other cryptocurrencies have since struggled, with most shedding double-digit percentages. James Van Straten, senior analyst at CoinDesk, anticipates ongoing volatility, stating, “We will see a lot of chop.”

Despite recent struggles, Van Straten urges investors to maintain perspective. “At the start of the year, I would have been ecstatic with anything above $84,000.”

Market Movers

As of the last 24 hours, Bitcoin has risen 1.3% to $96,873, while Ethereum gained 1.4% to reach $3,423.

BitGalactic’s Take

This record-setting options expiry underscores Bitcoin’s growing maturity as a financial asset and the potential for explosive movements in the coming weeks. While volatility remains a challenge, the market’s structural signals—high call option activity and renewed investor interest—align with the sentiment for a bullish breakout. BitGalactic encourages investors to prepare for short-term fluctuations but remain focused on the broader trend, which may lead to unprecedented highs.