On the last day of 2024, the cryptocurrency market continues to witness significant volatility, particularly with Bitcoin (BTC) and the potential shift to altcoins due to a major options expiration event. It is estimated that nearly $20 billion in BTC and ETH options will expire this Friday, causing notable changes in market movements.
Bitcoin and the Potential Shift to Altcoins
QCP Capital emphasizes that if the Bitcoin price does not exhibit significant movement, traders may continue to extend their short positions. In the current context, with Bitcoin struggling below $100,000, the potential for altcoins to break out, as history has shown, is quite high. This December, Bitcoin is experiencing one of its worst phases, down 2% in the past 30 days, diminishing expectations for a traditional "Christmas rally."
Challenging Factors and Future Forecasts
Some concerning factors include profit-taking and warnings from the U.S. Federal Reserve (Fed) about potentially cutting interest rates less than expected in the coming year. Analysts even warn that BTC prices could drop to $90,000 or even $70,000. However, if there is a pullback to the $90,000 mark, this could create attractive buying opportunities for traders as profit-taking behavior continues after a tumultuous year.
New Developments in 2024
In 2024, the cryptocurrency industry has witnessed many notable developments and challenges. Cointelegraph lists seven "crypto advocates" and seven "opposing views" that have influenced the industry.
Supporters include newly elected U.S. President Donald Trump, who has shifted from skepticism to support for Bitcoin, proposing the establishment of a Bitcoin reserve to make the U.S. the capital of cryptocurrency. El Salvador's President Nayib Bukele continues to advocate for the use of Bitcoin as legal tender. SEC Commissioner Hester Peirce, known as "Crypto Mom," has pushed for clearer regulations to foster cryptocurrency development.
Coinbase CEO Brian Armstrong has actively supported the industry and met with lawmakers. Ethereum co-founder Vitalik Buterin has conducted blockchain technology improvements. Senator Cynthia Lummis has proposed a U.S. government Bitcoin reserve, and MicroStrategy's Michael Saylor has advocated for Bitcoin adoption in public companies.
Opposing Views and Legal Challenges
However, in contrast to this supportive move, the U.S. Securities and Exchange Commission (SEC) has intensified its measures against cryptocurrency, creating uncertainty in the industry. The UK's Financial Conduct Authority (FCA) has also tightened regulations, seen as unsupportive of innovation. Sahil Arora sparked controversy by launching celebrity-backed memecoins. Additionally, President Biden's "Chokepoint 2.0" campaign, which is said to have restricted banking access for cryptocurrency companies, raises concerns about the administration's anti-crypto stance.
The future of cryptocurrency remains full of challenges and opportunities, and the cryptocurrency community is eagerly anticipating the next developments that will occur in the coming year.
