PANews reported on December 31 that QCP Capital stated that due to low liquidity, the volatility in the BTC spot market has intensified, with the recent rise constrained by ongoing selling pressure. Since December 19, there has been a net outflow of $1.8 billion from spot ETFs, while MicroStrategy's pace of BTC purchases has noticeably slowed, leading to a loss of momentum for BTC at the end of the year.
The weak trend in the cryptocurrency market is consistent with global market sentiment, as the S&P 500 and Nasdaq fell more than 1% for the third time in eight trading days, reflecting market pricing of uncertainties in global trade for 2025.
Despite a lackluster performance at the end of the year, BTC rose 120% over the year, outperforming global stock markets and gold. QCP Capital believes that a key catalyst for BTC in 2025 may appear in January, as institutions may readjust their asset allocations, potentially increasing BTC's allocation ratio, consolidating Bitcoin's dominance, and bringing volatility closer to that of the stock market. The market is expected to increase demand for downside protection and hedge risks more through selling call options.
