Bitcoin’s price remains resilient despite the last options expiry of the year, which threatened a significant correction below $85,000.
Over $14.2 billion worth of Bitcoin (BTC) options expired at 8:00 am UTC on Dec. 27, with a “max pain” point of $85,000, which indicates the price at which most options contracts would expire worthless.
The market experienced a total of $18 billion worth of Bitcoin and Ether (ETH) options expiry, according to Deribit Exchange’s Dec. 26 X post that wrote:
“With the market heavily leveraged to the upside, any significant downside move could trigger a rapid snowball effect. All eyes are on this expiry to define the narrative heading into 2025.”
BTC options expiry by strike price. Source: Deribit Exchange
Bitcoin remained resilient despite the options expiry, peaking above $97,330 at 9:06 am UTC, one hour after the year’s last options expiry event, Cointelegraph Markets Pro data shows.
BTC/USD, 1-day chart. Source: Cointelegraph Markets Pro
Based on Bitcoin’s correlation with the global liquidity index, BTC could peak at a local top above $110,000 in January before a potential correction.
Related: Confirmed Bitcoin payments hit yearly low due to holiday illiquidity
Bitcoin ETFs end 4-day losing streak with $475 million inflows after Christmas Day
The United States spot Bitcoin exchange-traded funds (ETFs) have ended their losing streak on the day after Christmas.
On Dec. 26, the Bitcoin ETFs received over $475 million worth of net positive inflows, Farside Investors data shows.
Bitcoin ETF Flow (USD. million). Source: Farside Investors
The Bitcoin ETFs have been a significant part of Bitcoin’s rally during 2024. The US spot ETFs accounted for about 75% of new investment in Bitcoin, pushing its price past the $50,000 mark by Feb. 15.
However, Bitcoin faces significant resistance around $98,000. A potential rally above this level would liquidate over $885 million worth of leveraged short positions across all exchanges, CoinGlass data shows.
Bitcoin Exchange Liquidation Map. Source: CoinGlass
Related: Ethereum shorter gains $1.1M on 50x leverage in 2 days
The end of the Christmas holidays could see more institutional liquidity return to the crypto space, some of it in the form of ETF inflows.
The returning liquidity could help push Bitcoin back above $105,000, according to Ryan Lee, chief analyst at Bitget Research, who told Cointelegraph:
“Post-Christmas, market activity typically picks up again, with funds expected to actively position for sectors that might benefit from Trump’s upcoming inauguration.”
Analysts remain optimistic about Bitcoin’s 2025 trajectory, with some predicting a Bitcoin rally to $160,000 driven by improving macroeconomic conditions and financial policy in the US.
Eric Trump Explains How His Dad Could Propel BTC to $1M. Source: Cointelegraph/YouTube
Magazine: Bitcoin dominance will fall in 2025: Benjamin Cowen, X Hall of Flame