Massive $2.7 Billion in Bitcoin and Ethereum Options Expire as Traders Eye Holiday Slowdown

Options contracts linked to Bitcoin and Ethereum worth nearly $2.7 billion in aggregate notional value expired on Friday, setting the stage for potential market realignments as year-end holidays approach and trading volumes historically thin out.

Data released earlier in the week indicated the expiration of around 21,000 Bitcoin (BTC) options contracts, carrying a put/call ratio of approximately 0.83 and a total notional value of about $2.1 billion. The “maximum pain” point—where the largest number of these options contracts become worthless—rested around the $98,000 mark. Although Bitcoin’s price has been consolidating near the psychologically significant $100,000 threshold, the alignment of these expiries and the shift in market sentiment could influence BTC’s short-term trajectory. Market participants say that if Bitcoin drifts closer to $98,000, traders who have taken bullish stances may face pressure to re-evaluate their positions.

Similarly, about 164,000 Ethereum (ETH) options contracts, totaling approximately $640 million, also reached expiry. Ethereum’s options showed a put/call ratio of roughly 0.68, suggesting a slightly more optimistic tilt than Bitcoin’s options structure. Its maximum pain point stood at around $3,700, not far from the current ETH trading range. Though the altcoin sector recently experienced stronger corrections than Bitcoin, Ethereum has maintained a relatively resilient footing just below key psychological levels such as $4,000.

Market makers—crucial players in providing liquidity—appear to have been more cautious over the last two weeks. Analysts note that there has been a higher proportion of block call options trading recently, accounting for more than 30% of daily activity on average. This shift implies that large players are making moves in anticipation of lower holiday liquidity, positioning themselves ahead of the seasonal slowdown. Historically, the Christmas period in Europe and the United States sees diminished trading volumes, which can accentuate price volatility if significant orders hit a thinner market.

Observers also suggest that the influence of U.S. equity markets on crypto assets could become more pronounced as the holidays near and as macroeconomic conditions develop. With the interplay between traditional and digital markets evolving, traders are paying close attention to how equity volatility and investor sentiment may carry over into crypto. While Bitcoin and Ethereum have shown general resilience, lingering caution remains.

This year’s holiday season brings an extra layer of uncertainty. In previous end-of-year periods, crypto markets have demonstrated reduced trading intensity, but the environment this year is more complex. The recent correction phase in the broader crypto space, combined with shifting market maker strategies and the potential knock-on effects of U.S. stock movements, leaves traders weighing whether a Christmas rally is on the cards or if the subdued volumes will reinforce current price consolidations.