Bitcoin Volatility Soars Ahead of $23 Billion Options Expiry, Market Under Pressure

• Approximately $23 billion in Bitcoin options are set to expire next Friday, representing over half of Deribit's open interest, intensifying market pressure.
• Bitcoin's market value saw over $130 billion in price swings within an hour recently, triggering liquidations and highlighting elevated volatility.
• Despite a 3% jump to $88,328 on Friday, Bitcoin is down 30% from its October high of $126,000, with overall market sentiment remaining bearish.
• Traders are pricing in continued downside risk through Q1 and Q2 2025, with heavy put options at $85,000 acting as a "gravitational magnet" for expiry.
• Future catalysts like the January 15 MSCI decision and renewed call-overwriting flows are expected to increase downside volatility and cap upside.

Why It Matters: Massive $23 billion Bitcoin options expiry fuels extreme volatility and bearish sentiment.