Jin Xin predicts that Bitcoin (BTC) volatility will continue and may give way to altcoins. Why? Because in the upcoming week of holidays, a large number of options are set to expire, which will surely stir the market. QCP Capital in Singapore said in a morning broadcast on Tuesday: 'Everyone is focused on Friday, when nearly $20 billion in BTC and ETH options are set to expire, almost half of the total options on the Deribit exchange. If the spot price continues to fluctuate like this, and option sellers keep thinking about postponing, then it will get even more lively.'
'Postponement' means that traders do not want the options to expire and want to move their positions to the future. If they still believe their judgment is correct, doing so is to maintain trading activity. High volatility might be good for those buying options, as it increases the chances of making a profit before expiration.
'Bitcoin is hovering below $100,000, and altcoins are starting to catch up,' said QCP, also noting that Bitcoin was at this price a month ago, and at that time, altcoins were just as hot. It is said that the ratio of Ether to Bitcoin rebounded from a low of 0.032, driving the momentum of altcoins. The cryptocurrency market often sees Bitcoin rise first, followed by a wave of altcoins. Investors with profits are looking for more returns, and as funds flow into altcoins, the prices soar.
Bitcoin has not been doing well this December, having dropped 2% in the past 30 days. Last night, it barely managed to pull back to 4000 points, and when it should have risen, it didn’t. After several weeks of gains, people started selling to make money, and they began to have doubts, feeling that the 'Christmas rebound' (the week of Christmas when prices tend to rise) this time is unlikely. Some warned that the Federal Reserve indicated fewer rate cuts next year, and they still won't allow the country to buy Bitcoin. Without changing the laws, Bitcoin is bound to fall.
But Alex Kuptsikevich from FxPro emailed CoinDesk, saying that if Bitcoin drops to $90,000, it could be a new opportunity for market traders. 'Maybe one day Bitcoin will suddenly drop to $70,000, but the likelihood of it correcting to $90,000 in the next few weeks is higher, and that's when buyers should step in, while sellers won’t be in a hurry to sell,' Kuptsikevich said. 'The market is still digesting the Federal Reserve's tough stance, and many who made a profit this year want to lock it in.'