Glassnode: Bitcoin options will face the largest expiration day in history, market positions reset

Glassnode stated, "Bitcoin is about to face the largest options expiration in history, with a notional value of approximately $23.58 billion in Bitcoin options expiring on December 26, while the spot price remains within a recent range.

Over the past month, options trading activity has cooled down. The flow of funds has significantly decreased, which typically indicates a weakening confidence in the bullish outlook, while demand for protective put options remains. The implied volatility curve has declined across the board, suggesting a reduction in recent hedging and upside leverage demand. The market is digesting a more controlled price movement.

Currently, the at-the-money implied volatility across various maturities is around 44%, down more than 10 volatility points from recent highs. The skew on the 25th (implied volatility of put options minus implied volatility of call options) remains positive, indicating that the pricing of put options is still higher than that of call options.

This means that the downside risk has been fully reflected in the price, and it does not appear to show the skewed pattern typically seen before a breakout. Arbitrage trading continues to dominate, and the flow of