Researcher Adam from Greeks.live forecasts fund withdrawals from the crypto market during Christmas week, linked to holiday closures of U.S. and European stock markets.
The Role of ETFs in Crypto Funding
Exchange-Traded Funds (ETFs) are critical in providing external funding to the crypto market. However, amid market volatility and expected fund withdrawals, ETFs may face challenges, potentially reducing market liquidity.
$12 Billion in Crypto Options Set to Expire
Nearly $12 billion in crypto options, representing over 40% of the market's total open interest, are set to expire soon. Investors are likely adjusting their positions in anticipation, which may cause further market movements.
Low Market Volatility Expected This Christmas Week
Adam predicts low volatility during the Christmas week. Trading volumes typically drop during holidays, resulting in a quieter trading environment.
The Christmas week is expected to see fund withdrawals and reduced liquidity in the crypto market. These temporary slowdowns could influence crypto market trends in 2025, depending on decisions by the incoming U.S. administration.
