Bitcoin 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 a.m. UTC on Dec. 27, with a ‘max pain’ point of $85,000, indicating the price at which most options contracts would expire worthless.
According to Deribit Exchange’s Dec. 26 Xpost, the market experienced a total of $18 billion worth of Bitcoin and Ether (ETH) options expiry. The market was heavily leveraged to the upside, and any significant downside move could trigger a rapid snowball effect. All eyes were on this expiry to define the narrative heading into 2025.
Bitcoin remained resilient despite the options expiry, reaching a peak above $97,330 at 9:06 a.m. UTC, one hour after the year’s last options expiry event, according to Cointelegraph Markets Pro data.
Based on Bitcoin’s correlation with the global liquidity index, BTC could reach a ‘local top’ above $110,000 in January before a potential correction.
Bitcoin ETFs ended their 4-day losing streak on the day after Christmas, with over $475 million worth of net positive inflows, as shown by Farside Investors data.
Bitcoin ETFs have played a significant role in Bitcoin’s rally during 2024, accounting for about 75% of new investments in Bitcoin and 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, according to Coinglass data.
As the Christmas holidays end, more institutional liquidity could return to the crypto space, including ETF inflows. This returning liquidity could help push Bitcoin back above $105,000, according to Ryan Lee, chief analyst at Bitget Research, who told Cointelegraph that 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 trajectory in 2025, with some predicting a rally to $160,000 driven by improving macroeconomic conditions and financial policy in the US.