Bitcoin's Holiday Bounce: What's Really Going On?

Market Overview

Bitcoin experienced a slight rebound on December 26, reaching near $89,000 after a shaky start. The entire crypto market remained relatively quiet during the holidays, leading to increased price fluctuations.

ETF Outflows

• Bitcoin ETFs saw $175.3 million in outflows on December 24.
• Ethereum ETFs experienced $52.7 million in outflows.
• This trend has persisted for five consecutive days, contributing to downward price pressure.

Price Range & Options Expiry

• On December 26, Bitcoin traded between $86,897 and $89,188.
• Market participants were awaiting a massive options expiry of $23.7 billion—one of the largest ever.

Key ETF Movements

• BlackRock’s IBIT had the highest outflows at $91.4 million on December 24.
• Grayscale’s products saw $30.4 million in outflows.
• Grayscale’s ETHE (Ethereum) recorded $33.8 million in outflows.

Market Volatility & Holiday Impact

• Trading volume was low due to the Christmas holiday, increasing volatility around key price levels.

Possible Reasons for the Decline

• Bitcoin and other cryptocurrencies have been falling since hitting a high near $126,000 in October.
• Current prices are about 30% below that peak.
• Some investors may be selling to lock in losses before the year ends.

Looking Ahead

• The options expiry could provide clues about future price movements.
• The market is waiting for more trading activity in January to establish clearer trends.