The end of 2024 is approaching with complex developments in the cryptocurrency market, setting the stage for a promising yet challenging 2025. A key event to watch this week is the expiration of Bitcoin (BTC) and Ethereum (ETH) options worth nearly $20 billion, which is expected to significantly impact market momentum.
For Bitcoin, although the price struggles to surpass $100,000, altcoins may begin to rebound strongly as seen in previous cycles. This December, BTC is experiencing one of its worst months with a 2% decline, dampening hopes for a traditional year-end rally, often referred to as the "Santa rally."
Analysts from QCP Capital, based in Singapore, have noted that the upcoming options expiration event could create significant volatility, as traders tend to "roll over" their positions to keep trades active. This is particularly important as traders consider whether to maintain their positions or rebalance their portfolios as the new year approaches.
Meanwhile, concerns persist about the potential downturn of the market, especially in the context of the U.S. Federal Reserve maintaining a cautious approach. However, some analysts suggest that a pullback to $90,000 could present an attractive buying opportunity. There are even speculations that BTC prices could drop further to $70,000, but the $90,000 level is likely to attract more buyers.
BTC briefly surged above $98,000 after strong buying trends from major investors propelled the price higher following a not-so-positive start to the week. Data from Cointelegraph shows that BTC reached a local high of $98,020, recording an increase of over 3% in just that day. Analysts see feasible signs of a "Santa rally" in the cryptocurrency market, with notable buying activity reflected in the order book volume.
Within 24 hours, nearly $40 million in short positions on BTC have been liquidated; however, some analysts remain cautious, warning that Bitcoin may face further declines if it cannot regain previously lost support levels.
In summary, while Bitcoin appears to be temporarily outperforming U.S. stock indices, with their lesser gains, the cryptocurrency market at the end of 2024 remains volatile and unpredictable, opening up new opportunities and risks for investors in the new year.
