Bitcoin Faces Holiday Liquidity Crunch as Massive Christmas Options Expirations Loom, Market Set to Range

COINOTAG News observes that with Christmas nearing, crypto market liquidity remains subdued. Despite gold’s elevated price, Bitcoin continues to trade in a defined range. Overnight data indicate BTC perpetual open interest declined by roughly $3 billion, while ETH perpetuals fell by about $2 billion, signaling deleveraging rather than new positioning. The liquidity squeeze elevates bidirectional risk into the holiday window. Historically, Bitcoin experiences 5%–7% swings during Christmas week, driven by end‑of‑year option expiries. This Friday features sizable expiries: about 300,000 BTC options (roughly $23.7 billion) and 446,000 IBIT options. Deribit open interest remains concentrated around key strikes, notably $100,000 and $85,000, with the largest pain near $95,000. Implied risk sentiment has eased modestly versus the last 30 days but stays mildly bearish. Year‑end tax‑loss selling could amplify near‑term volatility in thin liquidity, though history suggests a January mean reversion and a continued rangebound path absent a clear breakout.