Building on mid-week weakness and gold's record surge, Bitcoin's price stayed suppressed below $90,000 amid a $300 million gamma options expiry on December 26, 2025, unleashing potential for sharp moves. Over $28 billion in Bitcoin and Ethereum options expired on Deribit, amplifying crash risks, with technical patterns signaling further downside.
The December 26, 2025—Boxing Day—options expiry, anticipated earlier amid U.S. session slumps below $88,000, drove cryptocurrency market volatility. Bitcoin traded below $90,000, trapped by a $300 million 'gamma trap': an $85,000 put wall ($98.8M put gamma) anchoring downside and $90,000 call wall ($36.2M call gamma) capping upside, forming a negative gamma loop where dealers sold rises and bought falls.
Market analyst David noted: 'Price is locked in a cage,' compelled by 'dealer hedging math' over sentiment. With 58% of the gamma complex expiring, the pin could break, targeting a gamma flip at $88,925 to amplify moves.
Deribit saw $23B Bitcoin and $4B Ethereum options expire, Bitcoin skew bullish (put-call 0.38, max pain $96,000), Ethereum 0.43-0.45 ($3,000 pain). Price fell below $87,000 from $89,000 high, echoing 0.7% Dow drop in thin holiday volume.
Bearish technicals include rising wedge, bearish pennant, looming death cross (50/200-day WMAs). Drop targets: $80,000-$75,000.
Context: gold up 40% YTD (best since 1979), Bitcoin down 20%. Crypto Tice: 'Gold moved first. Bitcoin loading.' Divergence signals stress, metals beating crypto.
