""Witching Friday," also known as "triple witching" or "the triple witching hour," refers to the last hour of the stock market trading session on the third Friday of March, June, September, and December, when three kinds of securities expire simultaneously, often leading to increased volatility. Those securities are: stock index futures, stock index options, and stock options, (plus single-stock futures), according to Decrypt. These "triple witching" days often generate more trading activity, thus more volatility, or larger swings, since the expiration of the contracts trigger buying or selling of the underlying security, per Investopedia."
"Some $23 billion in contracts are set to expire just on Deribit, the largest Bitcoin exchange, according to Bloomberg."
"In the lead-up to Friday's event, Bitcoin continues to fall, as it has in recent weeks, triggered in part by the Federal Reserve's recent interest rate cut by 25 basis points on December 10, and compounded by uncertainty over the long-term, macroeconomic environment ahead, the Bank of Japan's potential rate hike, and fear of growing U.S. inflation in 2026."
Witching Friday, or triple witching, occurs on the third Friday of March, June, September, and December when multiple derivatives expire simultaneously, often increasing trading volume and volatility. Expirations include stock index futures, stock index options, stock options, and single-stock futures, which can force hedging flows that amplify price moves. Approximately $23 billion in Bitcoin contracts on Deribit expire on December 18, heightening the potential for sharp intraday swings. Bitcoin has retreated in recent weeks amid the Federal Reserve's 25-basis-point cut on December 10, concerns about a Bank of Japan rate hike, and fears of rising U.S. inflation in 2026.
Read at Fast Company
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