December 24th Bitcoin's all-time high options expiration approaching, attention on the $96,000 lockback phenomenon

As the last weekend of the year approaches, a huge variable is looming over the Bitcoin market. The options contracts set to expire this Friday amount to approximately $23.6 billion, the largest in history. Such a large expiration is likely to serve as a key factor influencing price movements over the coming days, beyond just a simple market event.

The Lockback Effect Targets $96,000

The most noteworthy point in the options expiration market is the Max Pain Point(. Currently, this figure is calculated at $96,000 for Bitcoin, which is the price level options holders most want to avoid.

Institutional traders employing options strategies like covered calls have a strong incentive to steer the market toward this level. As a result, a strong bullish sentiment tends to form around this price, with short sellers’ defensive buying and call option sellers’ price defense overlapping, creating a high likelihood of upward pressure.

Why Investors Are on High Alert

The $23.6 billion figure is not just a number. It indicates that on expiration day, liquidation volumes worth millions of dollars could flow in one direction, potentially causing a spike in volatility.

Patterns observed during previous options expirations over the past few months show that significant trend movements often occur just before or after large expiries, breaking out of the range. This expiration is also likely to be accompanied by considerable volatility spikes, and position adjustments to prepare for this are already underway.