Markets Absorb Record Options Expiry: What Changed and What Comes Next
Two days after the largest options expiry in crypto history, markets show surprising stability, with Bitcoin steady around $87,000 and traders now positioning for a potential 2026 breakout.
Two days after the largest options expiry in crypto history, markets have stabilized, defying predictions of heightened volatility and setting up a potential momentum shift for early 2026.
What Happened
The $27 billion options expiry that settled on Deribit December 26 passed with minimal market disruption. Bitcoin has stabilized around $87,000 in the following sessions, showing none of the 5-7% swings analysts had anticipated.
The settlement cleared over 267,000 contracts and more than 50% of Deribit's total open interest. Despite thin holiday liquidity that typically amplifies volatility, the market absorbed the event smoothly. Rollover activity dominated trading as institutions shifted positions to January contracts rather than closing outright.
Why It Matters
The orderly settlement marks a milestone for crypto derivatives markets. Previous large expiries often triggered sharp price moves, but this time the infrastructure and market depth held firm.
With over half of Deribit's gamma exposure cleared, Bitcoin can now respond more freely to fundamental drivers. The massive hedging pressure that kept prices pinned has lifted, potentially allowing spot demand from ETFs and institutional buyers to have greater price impact.
What to Watch
January options positioning reveals bullish expectations. Elevated call buying at strikes above $100,000 suggests traders anticipate a breakout attempt early in 2026. Key technical levels remain resistance at $90,000 and support near $85,000. The next significant options expiry arrives at month-end January, though at a much smaller scale than December's record event.
Key Takeaways
The calm absorption of this record expiry removes a major uncertainty from the market. With positioning still skewed bullish and normal trading volumes expected to return after New Year, early 2026 may bring renewed directional momentum. Market conditions continue to evolve.
