The Bitcoin options market is on the brink of a major transformation as significant gamma expirations loom, which could have a profound effect on BTC prices. According to the official information, analysts are closely monitoring this situation, as it may dictate the near-term trajectory of the cryptocurrency.
Upcoming Dealer Gamma Exposure Roll-Off
David Eng, managing partner at EnergySector, pointed out that from December 19 to December 26, a substantial portion of dealer gamma exposure is set to roll off. This event is expected to release the market from its current mechanical constraints, which have kept Bitcoin prices relatively stable.
Potential for Increased Volatility
Eng emphasized that the upcoming expirations could usher in a period of heightened volatility and price fluctuations for Bitcoin, which is currently trading at approximately $87,953. As traders prepare for these changes, the market's response could significantly influence Bitcoin's performance in the coming weeks.
As Bitcoin faces potential volatility due to significant gamma expirations, SEI is experiencing downward pressure around a critical support level ahead of a recent token unlock event. For more details, see SEI update.
