Why Bitcoin’s December Range May Be Nearing Its End
Bitcoin’s prolonged stay between $85,000 and $90,000 throughout December has been driven more by derivatives mechanics than by market sentiment.
Large options exposure clustered near spot levels forced market makers into aggressive hedging — buying dips and selling rallies — which compressed volatility and kept price locked in a tight range, even as macro conditions improved and risk assets pushed higher.
That dynamic is set to shift as year-end options expire. With roughly $27B in open interest rolling off and a persistent call bias, the hedging pressure that pinned price is likely to ease rapidly.
Implied volatility remains near monthly lows, suggesting the market may be underpricing the potential for movement just as these structural constraints lift.
When positioning suppresses price for an extended period, the breakout often comes swiftly once those forces fade.
