2025-12-26 10:27:48

Options settlement actually involves a significant reflow of funds.

The most direct impact is on liquidity. The margin previously frozen by the seller will be unfrozen, and the premiums from unexercised options will also return to the account's available funds. It may sound like funds are being withdrawn, but that's not the case. These released funds rarely leave the market directly; most are redistributed into other positions.

The key factor is timing. At the end of the year, many institutions are taking the opportunity to adjust their strategies. Some are proactively positioning for 2026, essentially preparing for upcoming market volatility and opening new risk exposures.

This also answers the recent common question: Will there be more movement in Bitcoin and Ethereum next year? The answer might be hidden in these institutions' position changes.

BTC-1.67%

ETH-1.71%

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SerNgmi

· 5h ago

Margin liquidation directly leads to a dump, this logic is really brilliant.

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NFT_Therapy_Group

· 5h ago

Haha, the institutions' moves at the end of the year are indeed cunning. The funds didn't actually run away; they're just reallocating positions.

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TokenStorm

· 5h ago

Oops, the institutions' moves are setting a trap for us retail investors. The moment the margin is unfrozen, they start lurking for 2026. As for capital flow, it looks like they are about to run when it appears to be unfrozen, but a quick check of on-chain data reveals the true picture. I backtested the last three options expiration cycles, and it's always the same pattern: 90% of the released funds are directly redirected to new positions, which aligns with the logic of the big players. End-of-year layout for next year's positions? Basically, they are testing the risk coefficient. Retail investors are still looking at technicals, while they are already adjusting the liquidation prices. Will Bitcoin and Ethereum have a rally next year? I can't say for sure, but the recent activity of whale addresses on-chain is a bit suspicious. The storm center might be coming.

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OldLeekConfession