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This Friday, on Dec 26, over $23.6 BILLION worth of Bitcoin options expire.
That’s the largest options expiry Bitcoin has EVER SEEN.
If you have any money in crypto, you SHOULD NOT ignore this.
Let me explain why it matters:
First, you need to understand what an options expiry actually is.
Options are leveraged bets on price. Calls bet BTC will be higher, and puts bet BTC will be lower.
When they expire, one of two things happens:
– They expire worthless
– Or they force hedging, buying, or selling in the spot market
With $23.6B rolling off at once, a huge amount of risk comes off dealer books in a single day.
That’s where volatility comes from.