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Question #453

Why is the $23 billion options expiration on December 26 something beginners should know about for potential Bitcoin volatility?

Catégorie: General
Large options expirations often trigger price swings when traders close or roll positions, shifting market sentiment abruptly
The number of expiring options directly determines Bitcoin’s mining difficulty adjustment time and the block reward schedule
Options expirations guarantee Bitcoin price increases because newly expired contracts automatically convert directly into all spot purchases
Expiration events only affect stock markets and have absolutely no influence on cryptocurrency prices or trader behaviors

Pourquoi est-ce la bonne réponse?

This is correct because when a large volume of options contracts expires, traders may be forced to buy or sell the underlying Bitcoin to hedge or settle positions. That activity can cause sudden increases or drops in price. Beginners should understand that these technical events can create volatility independent of new news or on-chain changes.

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