The crypto market experienced selling pressure today (23rd), once again falling into volatility correction. Last night, Bitcoin briefly surged past the $90,000 mark but was unable to sustain it, quickly reversing downward and falling below $88,000 this morning; Ethereum also struggled to resist the decline, simultaneously losing the $3,000 threshold.
Recently, Bitcoin has been highly volatile within the $85,000 to $90,000 range, mainly due to the market’s anticipation of the upcoming super settlement day on Friday (26th). The world’s largest crypto derivatives exchange, Deribit, will see options worth up to $28.5 billion in Bitcoin and Ethereum expire.
Jean-David Pequignot, Chief Business Officer of Deribit, pointed out that this settlement amount is unprecedented, accounting for more than half of the platform’s open interest of $52.2 billion.
He added that year-end expirations “symbolize the conclusion of an entire year,” and that the core market characteristic this year has shifted from previous speculative cycles to a more systemic, policy-driven “super cycle.”
The market also continues to focus on the so-called “maximum pain point”—the strike price where the option holder would incur the greatest loss before expiration. Although this theory remains controversial, it still serves as a basis for some traders’ strategies.
Pequignot stated that the current maximum pain point for Bitcoin is at $96,000.
However, downside risks cannot be ignored. He warned that put options with an exercise price of $85,000 have accumulated open interest of up to $1.2 billion. If selling pressure emerges, these positions could become accelerators for a price decline.
Nevertheless, bulls have not fully retreated. The market still shows a mid-term call spread strategy targeting $100,000 to $125,000, indicating that medium- to long-term bullish sentiment remains; but he also admitted that the short-term hedging costs (protective puts) have significantly increased, reflecting ongoing market caution amid recent volatility.
Pequignot added that traders are not rushing to close their hedged positions but are instead “rolling over” into next month. Specifically, funds are shifting from December-expiring put options with strike prices between $85,000 and $70,000 to January-expiring put options with strike prices between $80,000 and $75,000.
In other words, while investors have taken basic protective measures against short-term risks before the year’s end, they remain highly aware of potential market movements in early 2026 and are cautious not to let their guard down.
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