Analysis: Crypto market makers may unwind hedges, potentially leading to market volatility on Friday

Sean McNulty, trading director at liquidity provider Arbelos Markets, stated, 'MicroStrategy's announcement to issue more stock next year to buy more Bitcoin has driven up the price of Bitcoin. The market has a forward-looking attitude toward MicroStrategy's Bitcoin purchases, which is the biggest reason for the market's rise.'
According to the document submitted to the US SEC on December 23, MicroStrategy is seeking to increase the authorized number of Class A common stock and preferred stock.
So far this year, Bitcoin has risen 135%, surpassing the returns of traditional investments like global stocks and gold.
In addition, Bitcoin options with a notional value of $13.95 billion and Ethereum options worth $3.77 billion on Deribit are set to expire on Friday, with the platform's open contract positions exceeding $43 billion, a record high. McNulty added, 'Market makers may unwind hedges, which could lead to market volatility on Friday.' (Bloomberg)