The rally of Bitcoin is deflating in the final days of a record year for the digital asset, as investors assess remaining momentum following support from the president-elect donald trump to the cryptocurrency sector.
The largest token by market capitalization changed hands at $96,545, partially reducing a drop of almost 3% on the week. Smaller rivals, such as Ether and Dogecoin, a meme crowd favorite, swung in tight ranges.
Trump is moving forward with his promise to create a cryptocurrency-friendly environment in the US and has backed the idea of establishing a national Bitcoin reserve. Traders are capitalizing on some of the gains generated by the Republican’s support for cryptocurrencies and are waiting to see if the proposed reservation is viable.
Options Expiration
The cryptocurrency market is also preparing for the expiration of a substantial number of Bitcoin and Ether options contracts on Friday, one of the largest such events in the history of digital assets, according to top broker FalconX.
The notional value of Bitcoin contracts on the Deribit exchange, one of the largest digital asset derivatives exchanges, exceeds $14 billion, while the equivalent figure for Ether is approximately $3.8 billion.
Sean McNulty, chief operating officer at liquidity provider Arbelos Markets, warned of the risk of a “turbulent market” due to derivative positions expiring.
MicroStrategy Plan
Bitcoin is wavering even after MicroStrategy Inc. this week signaled the possibility of expanding its token purchase program. The company has transformed itself from a software maker into a Bitcoin accumulator and now holds more than $40 billion worth of this digital asset.
The original cryptocurrency is flirting with a decline for December, which would be its first monthly decline in four months, according to data compiled by Bloomberg. Bitcoin hit an all-time high of $108,316 on December 17 before pulling back.
Investors withdrew a net $1.5 billion from a group of a dozen U.S. Bitcoin exchange-traded funds in the four trading days through December 24, the largest outflow of funds since Trump’s victory in the US elections on November 5. However, heThe trend reversed on Thursdaywith investors pouring $475 million into the group, ending the four-day streak.
Source: Ambito
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