Boxing Day bonanza: $27 billion in bitcoin, ether options set for year-end reset

Core Insights - The crypto market is preparing for a significant structural reset with the expiration of $23.6 billion in bitcoin options and $3.8 billion in ether options on Deribit [2] - The expiration event, termed "Boxing Day," affects over 50% of the total open interest on the exchange and is characterized by a bullish positioning among traders [2] Options Market Dynamics - The max pain level is identified at $96,000 for bitcoin, indicating the price point where options buyers face maximum losses while sellers profit the most [3] - The put-call ratio stands at 0.38, suggesting a strong bullish sentiment as there are significantly more call options than put options [7] - Most open interest is concentrated in call options with strike prices ranging from $100,000 to $116,000, while the $85,000 put is the most popular downside bet [7] Max Pain Theory - The "max pain" concept is closely monitored as options expiry approaches, with some analysts suggesting it could influence the spot price of bitcoin and ether towards the max pain levels of $96,000 and $3,100 respectively [5] - However, the effectiveness of the max pain hypothesis is debated within the crypto derivatives market, with some participants arguing it has minimal impact on actual prices [6]