Bitcoin Primed for Post-Christmas Rally as $327 Million Gamma Expiration Approaches

Bitcoin traders are bracing for volatility as a massive options expiration event hits the market.

The Gamma Squeeze Catalyst

Nearly $327 million worth of Bitcoin options contracts are set to expire. This isn't just another expiry—it's a gamma release that could trigger significant price movement. When these contracts unwind, market makers adjust their hedges, often amplifying momentum in the underlying asset.

Post-Holiday Liquidity Rush

Christmas typically drains liquidity from crypto markets. The day after? That's when capital floods back in. Combine thin holiday trading with a nine-figure options expiry, and you've got a recipe for explosive moves. It's the financial equivalent of shaking a soda can and popping the tab.

Technical Setup Favors Bulls

The charts show Bitcoin consolidating near key support levels—a classic springboard pattern before major moves. With the gamma event acting as a potential catalyst, the technical alignment suggests upward pressure. Because nothing moves markets like a self-fulfilling prophecy backed by derivative mechanics.

Watch the Dominoes Fall

This gamma release doesn't operate in isolation. Its effects ripple through spot markets, liquidating over-leveraged positions and triggering algorithmic responses. The result? Cleaner price discovery or chaotic volatility—depending on whether you're the one holding the bag or catching the knife.

Timing is everything in crypto, and this confluence of events—post-holiday flows, technical positioning, and derivative mechanics—creates a perfect storm for movement. Just remember: on Wall Street, they call it 'gamma,' but in crypto, we call it Tuesday.

$327 Million Gamma Expiry Set to Impact Market

The major event is the gamma expiry of $327 million on the 26th of December. It comprises about 60% of the market’s gamma. As the gamma expires, the spot market won’t be stabilized by the dealer hedges. Hence, the spot flows will be able to MOVE the price more quickly.

As said by expert David, the price of Bitcoin won’t face any resistance after expiration due to the call wall of $90K after its expiry. Dealers will begin to buy instead of selling if the underlying hits the level of the gamma flip at $89,180, and hence it might see a rise to $94,000-$98,000 since there’s less liquidity in regions with large derivative contracts.

Two-Stage Market Outlook for Bitcoin

The coming 48 hours could span two phases. First, Bitcoin could remain in a small range of $87,000 to $89,500 as traders adjust to the gammas. Secondly, after December 26, the expiry of the $327 million in gammas will trigger stage two.

However, if Bitcoin remains above $89,180, then a smooth increase to $100,000 is also possible. On the other hand, if it breaks below $85,000, then selling pressure is likely to accelerate since gamma is negative, meaning more people are exposed to Bitcoin’s volatility. Patience is key; instead of trying to trade ranges at these low levels, investors might simply ride out these moves.