Following the expiration of a significant number of bitcoin options, the cryptocurrency's price showed surprising resilience, remaining above critical support levels.
Options Expiry and Its Impact
Deribit Exchange reported that on December 27, $14.2 billion worth of bitcoin options expired with a 'max pain' point at $85,000. However, bitcoin remained resilient, peaking at $97,330 one hour after the expiration event.
Role of ETFs in Bitcoin Dynamics
US bitcoin exchange-traded funds (ETFs) broke a four-day losing streak, receiving net positive inflows of over $475 million post-Christmas. These funds played a crucial role in bitcoin's rally in 2024, accounting for 75% of new investment, pushing prices past $50,000 by mid-February.
Future Outlook and Liquidity Return
As the Christmas holidays conclude, institutional liquidity is expected to return to the crypto space, potentially pushing bitcoin above $105,000. Analysts like Ryan Lee from Bitget Research anticipate increased market activity, with potential linked to political events.
Experts remain optimistic about bitcoin's future trajectory, seeing potential for significant growth driven by improving macroeconomic conditions and financial policy shifts in the US.
