Major crypto derivatives event approaching: a combined $26.77 billion in Bitcoin and Ethereum options contracts will expire on December 26th, potentially triggering significant market movement.

Here's what traders should track. Bitcoin holds the larger share with $23.09B in expiring notional value, where the max pain level sits around $98K—the price point where the most options expire worthless, typically attracting price action. Ethereum follows with $3.68B in expiring contracts, centered near the $3.2K max pain zone.

When this volume of derivatives expires simultaneously, it often catalyzes volatility spikes. Market participants hedging positions or liquidating exposure can amplify price swings in either direction. The outcome depends on how price develops relative to these strike levels in the days leading up to expiration.

For active traders, this calendar event deserves monitoring. Position your risk management accordingly—volatility rarely takes a day off around major option expiration windows, especially with year-end sentiment still in flux.