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Traders Brace for Volatility as 2025’s Largest Bitcoin Expiry Looms

Traders anxiously waiting for volatility on a trading floor

Traders Brace for Volatility as 2025’s Largest Bitcoin Expiry Looms

In Brief

  • • Bitcoin traders are preparing for heightened volatility ahead of the largest Bitcoin options expiry of 2025.
  • • The event is expected to test Bitcoin’s long-standing trading range, potentially pushing the price decisively.
  • • Analysts note that options-related volatility has historically caused declines, but this time may be different.

Options expiries have always come with varying levels of volatility, and bitcoin traders are expecting a big one in a couple of days. The largest Bitcoin options expiry is set to happen on Friday December 26th, and traders have cautioned market participants to prepare.

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A crypto trader shared the information on X, saying “insane” volatility should be expected to drive Bitcoin beyond the current extremes. This may be the defining moment that determines where the asset will go for the rest of the year and beyond.

Will Bitcoin Break out of Range?

One of the things that crypto has failed to accomplish this year is the anticipated Q4 rally. Bitcoin has been stuck in a range with $94,000 at the top and $83,000 at the bottom, leaving investors tired and unmotivated. However, this tight range may be about to break because of the enormous volatility that is expected on Thursday. 

According to this trader, the volatility may have such a huge impact that it either breaks bitcoin above $94,000 or below $85,000. After such a break, the coin may finally get a clear direction as it hasn’t had one in a while. Analysts say this inability to break out is due to a weakness in the general market and in bitcoin in particular.

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Several analysts and traders have predicted that the coin may go to abysmally low prices. Veteran trader Peter Brandt for example has said Bitcoin may drop to $25,000 before a genuine reversal happens. Brandt who is known for his unusual view of things said Bitcoin’s parabolic pattern has broken down and as was the case with previous cycles could cause an 80% crash.

Will This Time be Different?

Volatility generally refers to wild price movements which may either affect the price of an asset positively or negatively. However over the years, volatility, especially the ones caused by options expiries, have mostly resulted in negative price movements.

Will this time be different? As the trader says Bitcoin may break out of its current range either to the upside or downside. Hopefully things may work out in favor of the upside this time, and Bitcoin may finally get the momentum it desperately needs. 

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