Bitcoin Stays Strong Despite $14 Billion Options Expiry, Eyes $110K Target

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Bitcoin showed remarkable resilience during the year’s final options expiry on December 27, overcoming fears of a drop below $85,000. Instead, BTC peaked at $97,330 just one hour after the $14.2 billion options expiry event, signaling bullish momentum.

Options Expiry and Market Sentiment

At 8:00 am UTC, over $14 billion worth of Bitcoin options contracts expired, with a “max pain” point of $85,000—the price level where most contracts would expire worthless. This high-stakes event, combined with $18 billion in Bitcoin and Ether options expiring overall, raised concerns about a potential downside snowball effect.

Despite these risks, Bitcoin remained steady and even gained strength, supported by leveraged bets on a continued rally. Market watchers now turn their attention to January 2025, with Bitcoin showing the potential to reach $110,000 before a possible correction.

Bitcoin ETFs Recover After Christmas Slump

Adding to Bitcoin’s bullish momentum, US spot Bitcoin ETFs saw inflows of over $475 million on December 26, breaking a four-day losing streak. According to Farside Investors, these ETFs have played a crucial role in Bitcoin’s 2024 rally, accounting for 75% of new investment and helping push BTC past $50,000 by mid-February.

The renewed ETF inflows signal increased institutional interest, particularly as liquidity returns to the crypto market after the holiday season. Analysts believe this could help Bitcoin break past the $98,000 resistance, triggering the liquidation of over $885 million in leveraged short positions, according to CoinGlass data.

Post-Holiday Momentum and 2025 Projections

Analysts predict that the end of the Christmas holidays will bring a surge in institutional activity, fueled by ETF inflows and increased positioning in anticipation of economic shifts under President-elect Trump’s administration.

Ryan Lee, chief analyst at Bitget Research, highlighted this trend, stating:
“Post-Christmas, market activity typically picks up again, with funds expected to actively position for sectors that might benefit from Trump’s upcoming inauguration.”

Looking further into 2025, optimism surrounds Bitcoin’s trajectory, with some experts forecasting a rally to $160,000. This outlook is driven by expectations of improving macroeconomic conditions and favorable US financial policies.

Raj Sharma
Raj Sharma
I have been involved in the blockchain industry for over 5 years and have an extensive understanding of the technology. My career in cryptocurrency started with writing articles about blockchain technology and its use cases for various publications.

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