glassnode: Bitcoin Options Set for Largest Expiry in History, Market Positioning Reset, Post-New Year Volatility Expected

**Glassnode: Bitcoin Set for Largest-Ever Options Expiry ($23.58B) on Dec 26** On December 19, crypto analytics firm Glassnode issued a statement noting Bitcoin is poised for the biggest options expiry in its history: roughly $23.58 billion worth of Bitcoin options will expire on December 26, while the spot price remains locked in its recent trading range. Over the past month, Bitcoin options trading activity has cooled, with fund flows dropping sharply—typically a sign of fading market confidence in upside potential—though demand for downside protection via put options still holds. The implied volatility (IV) curve has seen broad declines, signaling reduced recent demand for hedging and upside leverage as the market absorbs more controlled price moves. Currently, at-the-money (ATM) IV across all maturities hovers around 44%, down more than 10 volatility points from recent highs. The 25% skew (put IV minus call IV) remains positive, meaning put options are still priced higher than calls. This suggests downside risk is already fully priced in, and the skew pattern does not match the typical setup seen ahead of a breakout. Arbitrage trading continues to dominate, and fund flows stay defensive. Over the past year, Bitcoin’s options market has grown rapidly, making hedging mechanisms increasingly critical. This record-breaking expiry will reset market positions and market makers’ risk exposures. Glassnode expects post-New Year market volatility to pick up following the reset.