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- Anjali Belgaumkar
Anjali Belgaumkar
Writer by choice, CryptoCurrency Writer, and Researcher by chance. Currently, focusing on financial news and analysis, as well as cryptocurrency news and data. One may not call me a crypto “Enthusiast” but trust me I'm getting there.
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Qadir AKQadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Dec 19, 2025 11:31 UTC
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Bitcoin Price Prediction: Liquidity Concentrates Near $85,000 Ahead of Options Expiry
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BTC $ 87,951.21 (0.93%) 
Bitcoin swings triggered $74M in liquidations, highlighting how leverage, timing, and derivatives fuel extreme short-term volatility.
Traders eye upcoming quarterly options expiry, as clustered leveraged positions may amplify Bitcoin’s next sharp price moves.
Bitcoin prices swung sharply around the opening of U.S. markets this week, triggering large liquidations and renewing debate over the role of derivatives, liquidity and timing in the world’s largest cryptocurrency.
Bitcoin saw fast moves higher and lower within short time frames, leading to the forced closure of both bullish and bearish leveraged positions, according to liquidation data tracked by market analytics firms.
Heavy Liquidations Follow Sharp Price Swings
Data shows that roughly $74 million in long positions were liquidated during one session, alongside significant short liquidations earlier in the move. The price action appeared to accelerate as leverage was flushed from the system.
During brief rallies, short sellers were forced out, only for prices to reverse soon after, hitting long positions as Bitcoin moved lower. Such patterns are common in highly leveraged markets, analysts said.
Crypto exchanges earn fees during periods of heavy liquidation, but there is no public evidence that exchanges directly control price movements.
Focus Turns to Options Expiry
Attention is now shifting to quarterly options expiry, often referred to by traders as “quadruple witching,” when several types of derivatives contracts expire simultaneously.
This event occurs four times a year and is known for increasing volatility across traditional financial markets. Bitcoin traders say the overlap of crypto and equity market positioning can amplify short-term price swings.
Historical price data shows Bitcoin has often weakened in the days following previous quarterly expiries, though the pattern has not been consistent every time.
Liquidity Levels in Focus
Analysts are keeping an eye on areas where large numbers of leveraged positions are clustered. Market data shows a concentration of liquidation risk near the $85,000–$85,500 range, where both older and newly opened positions could be vulnerable if prices move sharply.
If Bitcoin approaches these levels, forced liquidations could add momentum to price moves in either direction, analysts said.
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FAQs
Liquidation occurs when leveraged positions are forcibly closed due to insufficient collateral, locking in trader losses.
Quarterly options expiry can amplify short-term swings as overlapping derivative positions are settled, impacting market momentum.
No public evidence suggests exchanges manipulate prices; they earn fees from liquidations but price moves result from market forces.
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