BTC Stuck Below $90K Ahead of $28B Options Expiry as Markets Turn Defensive

Why Is BTC Struggling to Hold $90,000?

BTC remained under the $90,000 level two days before Christmas as trading activity thinned and markets drifted into holiday mode. later than briefly touching $90,000 on Monday, BTC slid back to around $87,400 on Tuesday, extending a pattern viewn over recent weeks where short-lived rallies stall rapidly.

Broader crypto markets followed the identical path. Ether slipped to roughly $2,960, while BNB and Solana fell to about $850 and $125. Total dipped back toward $3 trillion, a level that has repeatedly acted as a battleground between purchaviewrs and tradeers throughout December.

“The tone remains defensive,” said Timothy Misir, head of research at BRN. “Rallies lack follow-through, while trade-offs are shallow but persistent.”

That caution showed up in institutional flows. recorded $142 million in net outflows on Dec. 22, while ether products saw $84.6 million in inflows. also attracted modest capital, suggesting selective interest rather than broad risk-taking.

Investor Takeaway

How Does the Record Options Expiry Affect the Market?

Friday’s Boxing Day options expiry has become the main near-term focus for traders. Roughly 300,000 BTC options contracts, representing about $23.7 billion in notional value, are set to expire. That accounts for more than half of Deribit’s total .

Deribit Chief Commercial Officer Jean-David Pequignot described the expiry as “record-shattering,” noting that $28.5 billion in combined BTC and ether options will roll off this week, around double last year’s figure. Despite the size, he said conditions remain “orderly,” with implied volatility hovering near recent averages.

Open interest clusters around the $85,000 and $100,000 strikes, reflecting a market caught between cautious downside protection and lingering hopes for a year-end bounce. Pequignot said the structure shows “residual optimism for a Santa rally, even if conviction appears limited.”

Funding rates have edged higher in recent sessions, indicating a gradual rebuild in leveraged long positions. At the identical time, liquidity has thinned sharply, raising the risk that forced unwinds could produce sharp moves in either direction.

What Are Traders Doing With Risk Right Now?

QCP Capital said traders are reducing exposure rather than rotating into new bets. BTC perpetual open interest fell by roughly $3 billion overnight, while ether open interest dropped by about $2 billion. “Liquidity is thinning meaningfully,” the firm warned, adding that reduced depth increases the odds of sudden squeezes.

Misir and QCP both pointed to seasonality as a factor. Christmas-week price moves often unwind in ahead January once participation returns, suggesting that recent swings may reflect mechanics rather than shifts in fundamentals.

While crypto markets drifted, traditional hedges moved sharply higher. Gold surged to a fresh record near $4,450, drawing attention to rising demand for macro protection into year-end. Misir said the divergence highlights investor caution as political uncertainty returns to the forefront.

President Trump confirmed he will announce his choice for the next Federal Reserve chair by ahead January. Misir said the announcement itself is not an immediate driver for crypto prices, but it adds to the cautious backdrop until policy direction becomes clearer.

Investor Takeaway

Is the Market Nearing a Turning Point?

As of Dec. 23, BTC was on track for its fragileest fourth-quarter performance in eight years. The asset is down about 6% year-to-date and nahead 20% over the past six months, according to market data. BTC remains roughly 30% below its 2025 peak, leaving little room for complacency.

Alex Kuptsikevich, chief market analyst at FxPro, said recent gains look technical rather than driven by renewed confidence. “The crypto market is making a new attempt at growth, but this is not yet a recovery,” he said, noting that sentiment has improved only modestly.

The has climbed to 25, moving away from extreme pessimism but still far from risk-viewking territory. Kuptsikevich warned that short-term strength can be misleading in the current environment. “Attempts to bring year-to-date performance back to zero are little consolation,” he said, adding that disappointment has replaced the optimism viewn earlier in the year.

Seasonal data reinforces that caution. BTC is down more than 22% so far this quarter, making 2025 one of the fragileer year-end periods outside of major bear markets. Recent sessions have also followed a familiar pattern, with gains during Asian and European hours fading once U.S. trading begins.

For now, BTC’s inability to reclaim $90,000 leaves the market vulnerable to sharp reversals, particularly as options roll off and liquidity remains thin through the holiday period.