High volatility presents a favorable scenario for option buyers, as it raises the likelihood of options becoming “in-the-money” (profitable) before expiration, creating opportunities for significant gains. As Bitcoin (BTC) remains unpredictable, traders are expecting continued fluctuations, with a potential shift toward altcoins, especially as a major options expiry impacts market movements in the upcoming holiday period.

QCP Capital, based in Singapore, highlighted the importance of this Friday’s options expiry, which involves nearly $20 billion worth of BTC and ETH options. This amounts to roughly half of the open interest on Deribit, a leading cryptocurrency derivatives exchange. “If Bitcoin maintains its current range and options sellers continue to roll their shorts forward, we anticipate further volatility,” QCP noted in a broadcast message on Tuesday. The term “rolling” refers to traders moving their positions to later expiration dates to keep their trades alive while maintaining their market outlook.

For option buyers, high volatility is an advantageous condition, increasing the chances of options turning profitable before expiration.

QCP also mentioned that if Bitcoin struggles to break the $100,000 mark, altcoins could begin to gain more attention. A similar pattern occurred a month ago when Bitcoin was trading at similar levels, and the ether/bitcoin ratio bounced off the 0.032 support, which spurred activity in altcoins.

The cryptocurrency market typically goes through cycles where Bitcoin leads price movements, followed by a surge in altcoins as traders look for additional opportunities to profit. This leads to rapid and often substantial rallies in altcoins, driven by a shift in capital from Bitcoin into other assets.

Bitcoin is currently experiencing one of its weakest Decembers, down by 2% over the past 30 days, which has tempered what is usually a seasonally bullish period. Hopes for a “Santa rally” — a traditional price surge during the holiday season — have been dampened by profit-taking and a cautious market sentiment following weeks of price fluctuations.

Some market experts are warning that further declines could be on the horizon, as the U.S. Federal Reserve has indicated fewer interest rate cuts for the coming year, while also reiterating its position against state holdings of Bitcoin and expressing no intention to change that stance.

However, a drop to the $90,000 level could offer a new buying opportunity, according to Alex Kuptsikevich of FxPro. In an email to CoinDesk, Kuptsikevich explained that while a potential dip to the $70,000 range remains a possibility in a worst-case scenario, a pullback to $90,000 in the next couple of weeks is more likely. He believes this level could be an attractive entry point for buyers, potentially halting the sell-off. Kuptsikevich also mentioned that markets are still adjusting to the Federal Reserve’s more hawkish stance and the increasing desire to lock in profits after a strong year for Bitcoin.