Bitcoin options worth $8.5 billion are set to expire on Friday, sparking bullish sentiment among traders who are also seeking downside protection. According to CoinDesk, the world's largest crypto exchange, Deribit, will see these options expire at 8:00 UTC. The trading activity reflects an overall bullish positioning, indicated by a put-call ratio of 0.56. This suggests that traders are primarily leaning towards calls, expecting strong price action in January. However, Bitcoin has only gained 2% this month, leading some to hedge against potential downturns before the upcoming Federal Reserve rate decision. Sidrah Fariq, Deribit's global head of retail sales and business development, highlighted recent trading patterns, noting significant activity in put options as traders prepare for possible volatility. While monthly and quarterly expiries often cause short-term fluctuations, the overall impact is expected to be minimal, as the options market remains small compared to Bitcoin's substantial spot trading volume. With Bitcoin's $8.5 billion expiry representing less than 1% of its $1.7 trillion market cap, lasting effects are unlikely. Still, traders are cautious and adapting to market dynamics ahead of significant macroeconomic events.