Bitcoin Slips Below $88,000 as Traders Brace for Record $28.5B Options Expiry on Deribit - Coinedict

Bitcoin and the broader crypto market continued to lose ground during U.S. trading on Monday, with prices sliding ahead of what is set to be the largest options expiration in crypto history later this week.

Bitcoin fell below $88,000, reversing earlier gains above $90,000, while Ethereum slipped back under the $3,000 level. The weakness comes as traders position cautiously ahead of a massive $28.5 billion Bitcoin and Ether options expiry scheduled for Friday on Deribit.

Choppy Price Action Reflects Defensive Positioning

Crypto markets have remained stuck in a volatile range, with Bitcoin oscillating between $85,000 and $90,000 over recent sessions. Monday’s sell-off extended that choppiness, highlighting thinning liquidity and increased hedging activity as the year-end approaches.

While digital assets weakened, some crypto-linked equities showed resilience. Mining firm Hut 8 continued to outperform following news of a long-term AI data center lease, while Coinbase and Robinhood held modest gains despite pulling back from intraday highs. Strategy (formerly MicroStrategy) also faded late in the session, swinging from gains into slight losses as Bitcoin slipped.

Record Options Expiry Looms

Friday’s expiry will see more than $28.5 billion worth of BTC and ETH options roll off on Deribit, accounting for over half of the exchange’s total open interest. According to Deribit executives, this concentration raises the risk of heightened volatility as traders adjust positions.

Market attention is focused on Bitcoin’s $96,000 “max pain” level, the price point where options sellers stand to benefit most. At the same time, a significant $1.2 billion in open interest is clustered around $85,000 put options, increasing the risk that downside pressure could intensify if spot prices continue to weaken.

Hedging Signals Point to Continued Caution

Options market data suggests traders are not exiting risk entirely, but rather rolling defensive positions forward. December downside protection in the $85,000–$70,000 range is increasingly being shifted into January put spreads around $80,000–$75,000, indicating lingering concern beyond year-end.

While longer-dated call spreads targeting $100,000–$125,000 remain open, short-term protective puts have become more expensive, reflecting uncertainty rather than outright bearish conviction.

Liquidity Thins Into Year-End

The combination of record derivatives exposure, reduced holiday liquidity, and broader macro uncertainty is contributing to cautious market behavior. Rather than aggressive risk-taking, traders appear focused on capital preservation as 2025 draws to a close.

Unless Bitcoin decisively reclaims higher levels, markets may remain vulnerable to sharp moves around the options expiry window—especially if hedging flows begin to influence spot prices.

Bottom Line

Bitcoin’s slide below $88,000 underscores a market in wait-and-see mode. With $28.5 billion in options set to expire, traders are prioritizing protection over momentum, setting the stage for potential volatility as crypto heads toward 2026.