On December 25, 2024, amidst the ever-volatile cryptocurrency market, traders are anticipating a continued volatility phase for bitcoin (BTC) as a large volume of nearly $20 billion in BTC and ETH options is set to expire. This event could significantly impact the market's direction while potentially driving a shift towards altcoins.
QCP Capital has pointed out the significant impact of this expiration, emphasizing that it accounts for about half of the total open contracts on Deribit. As bitcoin continues to struggle below the $100,000 mark, the possibility of a price surge for altcoins is entirely plausible, similar to trends observed in similar market conditions in the past.
Although December often shows bullish trends, bitcoin has dropped 2% over the past month, dampening expectations of a 'Santa Claus rally' due to profits being taken and the market remaining cautious. Concerns regarding the Federal Reserve's approach to interest rate cuts and cryptocurrency regulations further complicate investor sentiment. Some analysts suggest that a market pullback to $90,000 could present new buying opportunities, although a sharper drop to around $70,000 is not completely ruled out.
Matador Technologies, a Canadian company specializing in the tokenization of real assets, has decided to add Bitcoin to its treasury as part of a long-term capital preservation strategy. This decision, approved by the board on December 23, aims to address the risks associated with the company's treasury primarily being held in Canadian dollars, especially considering Canada's dependence on oil exports and rising national debt levels. Matador plans to invest $4.5 million in Bitcoin initially and will continue to explore further purchases. The company also intends to convert most of its cash reserves from Canadian dollars to USD.
The president of Matador emphasized this move as a means to protect the treasury in the future and support the development of a digital gold platform, allowing for the buying, trading, and storage of encrypted gold. Adding Bitcoin to the corporate balance sheet is becoming an increasing trend, with other companies such as Quantum BioPharma and Jiva Technologies also making similar investments.
