As per the latest aggregated data of the prominent crypto analytics company, Skew, over 100,000 Bitcoin (BTC) options contracts are set to expire this coming Christmas Day. Converting that to the current market price, we are looking at over $2 billion worth of BTC – the largest amount in history.
For those unfamiliar with options contracts, it is what allows BTC holders to buy or sell at a precise price, which is also referred to as the strike price. The Christmas Day options expiry has noteworthy clusters resting at the $15,000 and $20,000 strike price, as per Skew’s report.
Expiry dates, such as this coming Friday the 25th, are mostly seen as a very volatile event for leading cryptocurrencies, such as Bitcoin. This is because holders tend to adjust their respective contracts as the expiry date inches closer. Furthermore, traders who aim for sizeable profit may choose to just receive the payout and surrender their crypto holdings. Considering all that, one can only expect such a monumental event to cause drastic price fluctuations for the currently-surging cryptocurrency, especially within this week.
Notably, Bitcoin’s expected price volatility this Christmas is not 100% guaranteed – in fact; there is a slim chance that it won’t budge at all. In the instance that the holders of said options contract just choose to hold it, the contract would simply expire on itself without affecting the BTC price all that much.