Bitcoin's year-end rally stalls, the market faces multiple tests

2024 is coming to an end, and Bitcoin's upward momentum is gradually weakening at the end of the year. As of press time on December 27, Bitcoin was trading at $95,914, down 0.12% from the previous day. Previously, Bitcoin had reached a record high of $108,316 on December 17, and December will also be its first monthly decline in four months.

On the one hand, institutional investors such as MicroStrategy continue to buy heavily, injecting confidence into the market. MicroStrategy hinted this week that it may expand its plans to buy bitcoin. The company has transformed from a software maker to a bitcoin accumulator, and now owns more than $40 billion in digital assets. On the other hand, the upcoming huge option expiration may trigger short-term volatility. On December 27, Bitcoin ushered in an option expiration date worth $14.27 billion, of which the option holdings at the $90,000 strike price were the largest.

In addition, the bitcoin reserves of Binance, the world's leading cryptocurrency exchange, fell to the lowest level since January this year, triggering market expectations that bitcoin prices may rise sharply, but bitcoin prices fell back on Thursday, falling 3.4% to $95,110, and the cryptocurrency index including Ethereum, Solana and Dogecoin also fell by about 3.5%.#BTC #ETH