Bitcoin Options to Face Largest Ever Expiry on Dec 26, Market Volatility Expected to Rise in 2026

As reported by Blockbeats, on December 19, Glassnode noted that Bitcoin is set to face the largest-ever options expiry on December 26, with a notional value of approximately $23.58 billion in Bitcoin options set to expire. The spot price remains within a recent range, and options trading activity has cooled over the past month, with reduced capital flows indicating weaker bullish sentiment and continued demand for put protection. Implied volatility curves have declined across the board, signaling reduced hedging and upward leverage demand. ATM implied volatility across all tenors is currently around 44%, down more than 10 volatility points from recent highs. The 25-day skew remains positive, suggesting put options are still priced higher than calls, indicating that downside risk is already priced in. Arbitrage remains dominant, with capital flows adopting a defensive stance. Over the past year, Bitcoin options markets have grown rapidly, making hedging mechanisms increasingly important. This record expiry will reset market positions and market maker risk exposure. Volatility is expected to rise after the reset into 2026.