Cryptocurrency Information Bureau News 🚨 A $28 billion options expiration is approaching on December 26th! How will the Bitcoin and Ethereum markets move before Christmas? We explain the potential price fluctuations caused by thin trading during the holiday season. #Cryptocurrency #OptionExpiry #BitcoinEthereum
A quick video explanation of this blog post!
This blog post is explained in an easy-to-understand video.
Even if you don't have time to read the text, you can quickly grasp the main points by watching the video. Please take a look!
If you found this video helpful, please follow our YouTube channel "Cryptocurrency Information Bureau," where we deliver cryptocurrency news every day.
Subscribe here:
https://www.youtube.com/@WEB3engineerjourney
Jon and Lila share their unique perspectives in this conversation in English 👉 [Read the dialogue in English]
👋 Do you find Web3 News difficult? Today, I'll explain it in a super easy-to-understand way.
When you watch the cryptocurrency news, you're likely surrounded by price fluctuations and a lot of technical terminology, making it hard to understand what's important. Today's key point is that while the prices of Bitcoin and Ethereum are dropping slightly, a major options expiration event is approaching on December 26th. Let's consider how this will affect the market from a beginner's perspective. After all, markets tend to be quieter due to the holiday season.
🔰 Difficulty: Ultra Beginner
🎯 Target: People who are new to Web3 / People who are interested in technology trends
Beware Before Christmas! Huge Bitcoin and Ethereum Options Expiration Shakes Markets
💡 Key points in 3 seconds
- The overall market is down a bit: Bitcoin$87,000The decline before and after was attributed to thin trading volume during the holiday season.
- Big event coming up: We are pleased to announce that on September 12, our company entered into a formal partnership agreement with$28 billionOption expiry of size may cause market volatility.
- Some coins are rising: Theta Fuel8.76%Up, a positive sign for the market.
📖 Table of Contents
What was the problem in the first place?
The cryptocurrency market can get a little quiet during the holiday season. Imagine that. Shopping malls are deserted on New Year's Day, and even small purchases can have huge price changes. In this news, the price of Bitcoin has risen.$88,000Below, approximately1%The overall market size also recorded a decline of$2.96 trillionThe market has shrunk to about this size, and many coins have dropped in value.
Why does this happen? It's a problem of "decreased liquidity." Liquidity, simply put, is the "ease of money flow." During the Christmas holidays, there are fewer traders, and trading volume10%Decreased$101 billionWhen this happens, even small buying and selling movements can cause large fluctuations in price.58.74%It still maintains its market dominance, but other altcoins (cryptocurrencies other than Bitcoin) are falling even further, dragging the overall market down.
In addition, Ethereum1.5%Get down$2,930Nearby. The NFT (non-fungible token, a unique piece of digital art) sector9%It's fallen by more than 100%. This is evidence that people are avoiding risk, like avoiding going outside because the weather is bad. However, the underlying technology (Bitcoin's Proof of Work, a mechanism for confirming transactions) has not changed, so it's all down to the short-term mood of the market.
What's so great about this technology?
The main event this time is the "option expiration." Simply put, an option is the right to reserve a future price to buy or sell. On December 26th, Bitcoin and Ethereum options expired on an exchange called Deribit.$27 billion to $28.5 billionThe 100-minute maturity is also set to expire. This is the largest in history and has the potential to create major ripples in the market. Why is it so exciting? This is a derivative, a system that allows you to bet on price fluctuations without buying the actual cryptocurrency. While it's not as secure as a fixed-term deposit at a bank, it's used by traders as a tool to manage risk.
Bitcoin operates on Proof of Work (a system where everyone competes to approve transactions), and Ethereum operates on Proof of Stake (an eco-friendly system where you deposit currency and it is approved). This maturity event does not change the underlying technology, but it does affect the price. For example, if traders move all at once to hedge (avoid risk), the price may fluctuate suddenly. Coins like Theta Fuel8.76%The reason it's rising is because it's used to pay for resources on the video streaming blockchain (Theta Network). Its attractive features include staking (depositing currency and receiving rewards) and burning (a mechanism for reducing currency).
| Item | Regular Market | Crypto Market During the Holidays |
|---|---|---|
| Trading Volume | Plenty and stable | There are few and prices fluctuate |
| Fluctuation risk | ordinary | High and steep ups and downs |
| Option impact | small | Large and impactful across the entire market |
As this table shows, risks are higher than usual during holidays. Layer-2 (high-speed versions of Ethereum, such as Optimism and Arbitrum) lower fees, but their weaknesses become more apparent during downturns. Solana's Proof of History (high-speed transaction confirmation) is strong in that it has low costs, but is also affected by the market.
How will your life change?
Let's consider three scenarios to see how cryptocurrency news affects our daily lives. First, imagine you're a fan of online shopping. If Bitcoin's price fluctuates wildly, the exchange rate may change when you buy goods from overseas, resulting in a loss or gain. For example, if you're buying a Christmas present, it could end up costing you more if the currency's value falls.
Next, there are those who enjoy video streaming. The rise in Theta Fuel is a sign that the technology behind the video platform called Theta Network is gaining momentum. It's like YouTube, but with blockchain technology, everyone contributes and receives rewards. This could make daily video viewing more fair and rewarding.
Finally, for those interested in investing but new to the industry, this option expiration is proof that specialized tools like those for stocks and FX are spreading to cryptocurrencies. In everyday life, watching the news and learning about market mechanisms will improve your financial literacy. However, because of the high risk involved, it's best to keep it fun, like a game.
To see for yourself
It's important not to blindly believe news, but to do your own research. First, check the official website. For example, check the options data on the official Deribit page. Since scams are common in the world, be careful of fake sites by manually entering URLs. DYOR (Do Your Own Research) is the habit of doing your own research. For example, check the price and volume in real time on CoinMarketCap to see if the numbers in the news are accurate. It's also recommended to ask for opinions from trusted communities (such as r/cryptocurrency on Reddit), but be careful as they are anonymous.
What happens next?
If more option expiration events like this occur in the future, the cryptocurrency market may become more mature. As we enter 2026, Bitcoin's price may stabilize and new technologies (e.g., Layer-1 competition) may evolve. On a positive note, niche coins like Theta Fuel may be expected to play an active role in the video and AI fields. However, regulatory changes (tighter government rules) and security risks (e.g., hacking) are likely to be factors. Prices are unpredictable, so keep an eye on technological advances. Cryptocurrencies are still in their infancy, so be prepared for sudden changes.
My Feelings, Then and Now
Today, I explained the Bitcoin and Ethereum market declines and the huge options expiration for beginners. Understanding how the technology works will help you avoid being scared of the news. Remember, cryptocurrencies are full of risk. Make your own investment decisions, but use this information as information. Stay tuned for the next news!
👨💻 Author: SnowJon, Web3 and AI researcher
Based on the knowledge he gained from the University of Tokyo's Blockchain Innovation course, he provides easy-to-understand explanations of Web3 and AI technology, focusing on translating complex technologies into everyday life.
*This article was written with the assistance of AI, but the content was checked and final editing was done by the author.
References/Information sources
- Deribit Official Website – Option Expiry Information
- CoinDesk – Cryptocurrency Market News
- CoinMarketCap – Real-time price data