As Bitcoin experiences a lull, altcoins could rally, with $90K considered an attractive price for buyers.

High volatility can be beneficial for option buyers, as it increases the chances of an option becoming “in-the-money” (profitable) before expiration, creating opportunities for significant gains. Traders are anticipating continued choppiness in Bitcoin (BTC) prices, with the potential for a shift towards altcoins, especially as a major options expiry impacts market dynamics during the upcoming holiday week.

QCP Capital, based in Singapore, pointed out the significance of this Friday’s options expiry, which will involve nearly $20 billion in BTC and ETH options. This accounts for about half of the open interest on Deribit, a leading cryptocurrency derivatives exchange. “If Bitcoin remains in its current range and options sellers continue to roll their positions forward, further volatility is likely,” QCP noted in a broadcast message on Tuesday. The term “rolling” refers to traders extending their positions to later expiration dates, keeping their trades active while maintaining their market outlook.

For option buyers, high volatility presents a prime opportunity, as it increases the likelihood of their options becoming profitable before expiration.

QCP also highlighted that Bitcoin’s inability to surpass the $100,000 mark could drive interest back into altcoins. A similar pattern was observed a month ago when Bitcoin traded near current levels, and the ether/bitcoin ratio bounced off the 0.032 support level, leading to a surge in altcoin activity.

The cryptocurrency market tends to cycle between Bitcoin leading price movements, followed by a surge in altcoins as traders look for additional returns. This often results in rapid altcoin rallies fueled by capital flowing from Bitcoin into other digital assets.

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

Some analysts are warning of further declines as the U.S. Federal Reserve has signaled fewer interest rate cuts for next year and reiterated its stance against state holdings of Bitcoin, with no plans to change that policy.

However, a dip to the $90,000 level could offer a favorable entry point for buyers, according to Alex Kuptsikevich of FxPro. In an email to CoinDesk, Kuptsikevich mentioned that while a sharp drop to the $70,000 range is possible in a worst-case scenario, a pullback to $90,000 in the coming weeks seems more likely. He believes this level could be attractive enough to halt the sell-off and draw in buyers. Kuptsikevich also noted that markets are still adjusting to the Federal Reserve’s more hawkish tone and the growing desire to lock in profits after a strong performance throughout the year.