Analysis: This Friday's record options expiration will amplify market volatility, with a total of $28.5 billion in BTC and ETH options expiring

The thin market liquidity during the Christmas holiday, soaring precious metal prices draining liquidity, and the upcoming record options expiry have all contributed to Bitcoin remaining below $90,000 today. Analysts warn that the record options expiry this Friday will amplify volatility.

Approximately 300,000 BTC options contracts (with a nominal value of about $23.7 billion) are set to expire on Friday, accounting for more than half of the total open interest in Bitcoin on Deribit. Deribit's Chief Commercial Officer Jean-David Pequignot stated that this options expiry is "record-breaking," with the combined expiry size of BTC and ETH options reaching $28.5 billion, double that of last year.