Crypto markets continued to slide ahead of this week’s record options expiry, with defensive positioning and thinning liquidity pointing to a cautious outlook into 2026.

Bitcoin (BTC) and other major digital assets drifted lower through the U.S. session on Monday. BTC slipped below $88,000 after earlier pushing above $90,000, while ether (ETH) fell back under the $3,000 level.

Some crypto-linked equities managed to hold onto gains. Hut 8 (HUT) led the group, extending its rally after announcing a 15-year AI data center lease agreement with Fluidstack last week. Shares were up 16% on Monday, aided by a price target hike from Benchmark analyst Mark Palmer. Coinbase (COIN) and Robinhood (HOOD) also traded higher, though both retreated from session highs as crypto prices weakened. Strategy (MSTR) swung from an earlier 3% gain to a modest loss late in the day.

Record options expiry looms

The choppy trading range between $85,000 and $90,000 comes ahead of Friday’s record $28.5 billion expiration of BTC and ETH options on crypto derivatives exchange Deribit. The total accounts for more than half of Deribit’s $52.2 billion in open interest, according to Jean-David Pequignot, the exchange’s chief commercial officer.

“This year-end expiry marks the culmination of a year defined by institutional maturity and a shift from speculative cycles to a policy-driven supercycle,” Pequignot said.

Bitcoin’s $96,000 “max pain” level sits at the center of the expiry, where option sellers stand to benefit the most. Around $1.2 billion in open interest is concentrated in $85,000 put options, which could exert downward pressure on spot prices if selling intensifies. While mid-term call spreads targeting $100,000 to $125,000 remain popular, short-dated protective puts have become more expensive, he added.

The skew between call and put pricing has eased from recent extremes but continues to signal caution. Traders appear to be rolling defensive positions forward rather than closing them outright, with activity shifting from December $85,000–$70,000 puts into January $80,000–$75,000 put spreads—suggesting lingering concern beyond year-end.