Published: December 23, 2025 | Current Bitcoin Price: ~$88,000
Bitcoin has reclaimed levels near $90,000 at the start of the holiday week, showing modest gains amid heightened derivatives activity. The cryptocurrency recently touched intraday highs above $90,500 before settling around $88,000, reflecting resilient buying interest despite broader market caution. This rebound arrives just ahead of a massive options expiry event, where roughly $23 billion in contracts are set to settle—fueling speculation about intensified volatility and the potential for a classic year-end “Santa rally” in crypto.
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Bitcoin Price Holds Near $90,000 Into Holiday Week
As of late December 2025, Bitcoin trades around $88,000, down approximately 30% from its all-time high of $126,198 reached in October. Recent sessions have seen the price fluctuate between $87,900 and $90,500, supported by increased trading volume and a slight uptick in market sentiment.
- 24-hour change: +0.42% with volume surging over 50%.
- Market cap stands at $1.75 trillion, underscoring Bitcoin’s dominance in a $3+ trillion crypto ecosystem.
- Thin holiday liquidity could exaggerate moves in either direction.
While short-term momentum remains mixed, the price action highlights ongoing tug-of-war between bears pressing from overhead resistance and bulls defending key supports.
Record $23 Billion in Bitcoin Options Expire on Friday
The derivatives market is bracing for one of its largest events ever, with approximately $23 billion in Bitcoin options contracts—primarily on platforms like Deribit—scheduled to expire on December 26. This record open interest concentration has already contributed to elevated implied volatility and choppy price swings.
- Key strikes: Heavy put interest near $85,000 (potential downside magnet) and calls clustered at $100,000–$120,000.
- Max pain level estimated around $96,000, where most options would expire worthless.
- Post-expiry repositioning often leads to volatility spikes as dealers unwind hedges.
Such large expiries historically act as catalysts, either dampening moves through gamma hedging or unleashing sharp breaks once positions clear.
Can the Santa Rally Survive a Volatile Expiry?
Traders are divided on whether traditional year-end seasonality can deliver a “Santa rally”—a late-December push higher often seen in risk assets. Historical data shows mixed results for Bitcoin during holiday periods, with gains in bull years but frequent sideways or corrective action in others.
- Optimists point to potential short squeezes and renewed ETF inflows post-expiry.
- Pessimists highlight bearish skew in options, thinning liquidity, and macro headwinds limiting upside.
- Analysts note diminished returns in recent cycles, suggesting 2025 may favor range-bound trading over explosive rallies.
While hopes persist for a festive bounce—potentially toward $95,000–$100,000—the overcrowded derivatives landscape adds significant risk of whipsaw action.
What Traders Are Watching in the Days Ahead
Key focal points include:
- Expiry Dynamics: Monitoring gamma exposure and dealer hedging flows leading into December 26.
- Liquidity Conditions: Holiday-thinned markets could amplify breakouts or breakdowns.
- Broader Sentiment: Spot ETF flows, funding rates, and equity correlations (e.g., S&P 500 Santa patterns).
- Technical Levels: Support near $85,000–$87,000; resistance at $90,000–$92,000.
Volatility is likely to remain elevated through year-end, offering opportunities for agile traders but challenges for longer-term holders.
Outlook: Balanced Risks in a Mature Market
Bitcoin’s late-2025 performance reflects a maturing asset class influenced by institutional positioning and macro factors. While a Santa rally remains possible under favorable conditions, the record options expiry introduces meaningful two-way risks. Investors should prioritize risk management amid uncertain holiday trading.
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Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are highly volatile. Always conduct your own research and consider your risk tolerance.
