Bitcoin’s price has held steady even in the face of a massive options expiry, which some feared could trigger a drop below the critical $85,000 threshold.
On December 27, over $14.2 billion worth of Bitcoin options expired at 8:00 am UTC. The “max pain” level for this expiry, where most contracts would lose their value, was set at $85,000. In total, the market witnessed the expiration of $18 billion in Bitcoin and Ether options combined, as highlighted in a December 26 post by Deribit Exchange:
“With the market heavily tilted toward upward momentum, any sharp move down could lead to cascading effects. The outcome of this expiry is pivotal in shaping the market narrative for 2025.”
Bitcoin managed to maintain its ground despite the event, surging to a peak of $97,330 at 9:06 am UTC—just an hour after the options expired.
Analysts suggest Bitcoin could reach a local high above $110,000 in January, leveraging its correlation with global liquidity trends, before encountering potential pullbacks.
Bitcoin ETFs See Post-Holiday Boost with $475M Inflows
Spot Bitcoin ETFs in the United States broke their recent four-day losing streak with a significant inflow of funds right after Christmas.
On December 26, Bitcoin ETFs recorded net positive inflows of $475 million, based on data from Farside Investors.
These ETFs have been instrumental in driving Bitcoin’s impressive performance throughout 2024. By mid-February, investments through U.S. spot ETFs accounted for about 75% of new capital entering Bitcoin, helping propel its price past the $50,000 milestone.
However, Bitcoin currently faces substantial resistance near $98,000. If the price breaks above this level, it could trigger the liquidation of more than $885 million in leveraged short positions across major exchanges, as reported by CoinGlass.
The end of the holiday season is expected to bring an influx of institutional liquidity, partly through ETF investments, which could support Bitcoin’s upward trajectory.
“Historically, market activity resumes strongly after the holidays, with funds likely reallocating toward sectors set to benefit from the political and economic outlook in 2025,” said Ryan Lee, chief analyst at Bitget Research.
Optimism Builds for Bitcoin’s 2025 Prospects
Market analysts remain bullish on Bitcoin’s potential in the upcoming year. Some forecasts suggest Bitcoin could rally to $160,000, supported by favorable macroeconomic trends and U.S. financial policies.
As the crypto market navigates these key turning points, all eyes remain on Bitcoin’s performance heading into the new year.
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