The cryptocurrency market came under sudden pressure during the US session, wiping out earlier gains as investors positioned cautiously ahead of the largest options expiry of the year. The pullback reflected growing uncertainty and thin liquidity conditions across risk assets.
Bitcoin fell below the $87,000 level after briefly touching an intraday high near $89,000. Other major cryptocurrencies also moved sharply lower, with BNB, Dogecoin, and Canton posting losses of more than 3% over the past 24 hours.
The sell-off mirrored weakness in US equities, where the Dow Jones Industrial Average declined by roughly 70 basis points. Both stock and crypto markets saw subdued trading volumes as many institutional and retail participants remained away due to the holiday period.
The focus now turns to a major derivatives event, as the crypto industry prepares for the largest options expiry of the year. Bitcoin options with a notional value exceeding $23 billion, alongside Ethereum options worth more than $4 billion, are set to expire on Deribit.
Bitcoin options currently show a put-call ratio of 0.38, signaling a bullish skew as call contracts significantly outnumber puts. The largest concentration of bullish strikes lies between $100,000 and $116,000, while the maximum pain level stands at $96,000, a price point where the highest number of options expire worthless.
Ethereum options add to volatility risk
At the same time, around 1.28 million Ethereum options, valued at over $4 billion, will expire. Ethereum’s put-call ratio ranges between 0.43 and 0.45, also indicating a bullish bias. The most active strike prices are clustered between $3,000 and $3,100, with the maximum pain level sitting at $3,000.
Historically, the crypto market tends to experience heightened volatility before and after large-scale options expirations. This effect may be amplified further by the current low-volume environment, as holiday conditions continue to suppress trading activity across digital asset markets.
Bitcoin price action signals further downside risk
Technical indicators suggest that Bitcoin remains under pressure and could face additional losses in the near term. On the three-day chart, the price structure reveals several bearish formations that point to weakening momentum.
Bitcoin has formed a rising wedge pattern, defined by two converging upward-sloping trendlines, a structure that often precedes downside breakouts. In addition, a bearish pennant pattern has emerged, combining a sharp vertical move followed by a tightening symmetrical triangle.
The asset is also approaching a potential death cross, as the gap between the 50-day and 200-day weighted moving averages continues to narrow. If bearish momentum persists, Bitcoin could retest the November low near $80,000. A decisive break below that level would open the door for deeper losses, potentially extending toward the $75,000 region.
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