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102,200 options will expire this Friday, leading to Bitcoin volatility
Skew, a cryptocurrency data provider, reported on Twitter that 102,200 options will expire this Friday, December 25. Option contracts allow their holders to buy or sell Bitcoin at a specific price known as a "strike." December 25 expiration has notable clusters around USD 15,000 strike price and USD 20,000 strike price.
The expiration date of Bitcoin options contracts is a volatile event for Bitcoin, as expiration approaches, holders adjust their contracts. Those who make profit may also decide to get paid and the price of the cryptocurrency would drop accordingly.
Crypto derivatives trading has exploded this year as more traders and institutional investors seek additional exposure to Bitcoin. Bitcoin is currently in the middle of a bull market that is being driven in part by institutional investors and large off-market trades.
Approximately $ 2.3 billion worth of Bitcoin (BTC) futures will expire on Christmas Day, setting the stage for a volatile week in the cryptocurrency market.
