Year-End Warning: Crypto Market Faces Big Waves
The end of the year is always a sensitive time for the cryptocurrency market with factors such as investment funds taking profits, declining liquidity, and options contracts expiring, causing volatility to increase significantly.
Profit-Taking Pressure
Funds often sell off to realize profits before the end-of-year financial reports, creating significant downward pressure.
Poor Liquidity
Trading volume decreases during holiday periods increases the risk of volatility, especially when the market faces large sell orders.
Options Contracts Expiration
Billions of USD in options value expiring at the end of December could cause significant price fluctuations as large institutions seize the opportunity to manipulate the market.
Advice
• Avoid large trades or using high leverage.
• Monitor options expiration dates.
• Prioritize long-term investments instead of chasing short-term volatility.
Be cautious and prepare thoroughly to protect your assets during this risky time.