On December 25, 2024, the cryptocurrency market is facing unprecedented volatility as the major expiration of bitcoin (BTC) and Ethereum (ETH) options is rapidly approaching. According to analysis from QCP Capital, this event holds nearly half of Deribit's total open interest, which is expected to lead to a change in traders' strategies.
Currently, BTC remains below $100,000, which could prompt a shift in focus to altcoins, similar to previous times when Bitcoin has stagnated. December has been a difficult month for Bitcoin, with a 2% drop that dashed hopes of a traditional “Santa Rally.” Additionally, the Federal Reserve’s cautious stance on interest rates and cryptocurrencies has raised concerns about continued bearish momentum.
However, a correction to $90,000 could open up buying opportunities. According to FxPro expert Alex Kuptsikevich, although a deeper drop to the $70,000 area is possible, a pullback to $90,000 is more likely to attract buyers.
One notable development in the market was MicroStrategy’s plan to increase its stock holdings to support its $42 billion strategy of purchasing 21,000 BTC – known as Plan 21/21. December saw MicroStrategy purchase over 42,162 BTC, pushing its total Bitcoin holdings to over 444,000 BTC, worth approximately $43.5 billion.
In Russia, lawmakers have imposed a six-year ban on cryptocurrency mining in ten regions, starting January 1, 2025, to reduce power consumption and avoid mass blackouts. The move is part of a series of crypto-related laws signed into law by President Putin.
Meanwhile, crypto derivatives trading platform Hyperliquid saw massive outflows worth over $256 million amid concerns over North Korean hackers’ mining capabilities. Despite the concerns, Hyperliquid claims it has not experienced any incidents and that user funds are safe.
Hackers from North Korea reportedly stole around $1.3 billion in 2024 as international sanctions increased pressure, posing a growing threat to the cryptocurrency sector.
