As a seasoned crypto investor with over a decade of experience navigating the volatile digital asset market, I can confidently say that the recent Bitcoin price action has been nothing short of intriguing. Despite the looming $85,000 ‘max pain’ point during the last options expiry event of the year, BTC managed to hold its ground and even peaked above $97,330. This resilience speaks volumes about the maturity of the market and the increasing institutional interest in Bitcoin.
Despite the recent options expiration of the year that potentially could trigger a drop in Bitcoin’s value below $85,000, its price has managed to stay strong and steady.
14.2 billion dollars’ worth of Bitcoin (BTC) options expired at 8:00 a.m. in UTC on Dec. 27, reaching a ‘max pain’ point or the price where most option contracts would become valueless if not exercised, which was approximately $85,000.
On December 26th, as per Deribit Exchange’s latest blog post, the combined value of Bitcoin and Ether (ETH) options expiration reached a staggering $18 billion.
“With the market heavily leveraged to the upside, any significant downside move could trigger a rapid snowball effect. All eyes are on this expiry to define the narrative heading into 2025.”
Despite the recent options expiry, Bitcoin displayed strength and surpassed $97,330 around 9:06 a.m. UTC – an hour post the final options expiry event for the year, according to data from CryptoMoon Markets Pro.
According to Bitcoin’s connection with the worldwide liquidity index, there’s a possibility that Bitcoin might reach a ‘temporary high’ above $110,000 in January, followed by a possible downturn or adjustment.
Bitcoin ETFs end 4-day losing streak with $475M inflows after Christmas day
On the day following Christmas, the run of losses for Bitcoin exchange-traded funds (ETFs) based in the U.S. came to an end.
On December 26th, a total of $475 million flowed into Bitcoin ETFs, according to data from Farside Investors.
In the year 2024, Bitcoin Exchange-Traded Funds (ETFs) played a major role in driving up Bitcoin’s value. US spot ETFs were responsible for approximately 75% of new investments in Bitcoin, which led its price to surpass $50,000 by February 15th.
Nevertheless, Bitcoin encounters substantial resistance near the $98,000 mark. Breaking through this barrier could trigger the liquidation of approximately $885 million in short positions that are highly leveraged, according to data from Coinglass.
As the Christmas season wraps up, there might be an increase in institutional funding flowing back into the cryptocurrency market, with some of it potentially coming from Exchange-Traded Fund (ETF) investments.
According to Ryan Lee, the chief analyst at Bitget Research, the influx of cash could potentially drive Bitcoin‘s price back over $105,000, as he stated in an interview with CryptoMoon.
“Post-Christmas, market activity typically picks up again, with funds expected to actively position for sectors that might benefit from Trump’s upcoming inauguration”
Experts continue to express positivity regarding Bitcoin’s future direction in 2025, as they foresee a possible surge in its value up to $160,000. This anticipated rise is attributed to enhanced economic circumstances and monetary policies in the United States.
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2024-12-27 17:12