Bitcoin’s Year-End Rollercoaster: Market Makers Navigate Volatility
Bitcoin’s price retreated from its all-time high as 2024 drew to a close, trading at $95,600 on December 27, 8:45 a.m. Singapore time. This 3% drop came despite a resurgence in Bitcoin ETF inflows, which totaled $475.15 million on December 26. Fidelity’s FBTC led with $254.37 million, while ARK 21Shares’ ARKB followed with $186.94 million.
Market makers attributed the price action to several factors. Year-end profit-taking played a significant role, with large funds seemingly content with Bitcoin hovering around $100,000. A massive $14.27 billion worth of Bitcoin options set to expire on December 27 added to the market volatility.
Institutional activity remained strong despite the pullback. MicroStrategy continued its Bitcoin accumulation strategy, purchasing an additional $561 million worth near the recent record high. Binance’s Bitcoin reserves dropped to around 570,000 coins, the lowest level since January 2024, potentially signaling a bullish trend.
Technical analysis revealed a failed breakout from a falling wedge pattern. Bitcoin needed to reclaim key support levels, including the 200-day EMA near $96,400 and the 50-day EMA around $97,830, to maintain its upward trajectory. Failure to do so could lead to a decline toward $90,000.
Sean McNulty, trading director at Arbelos Markets, emphasized the impact of MicroStrategy’s Bitcoin purchases on market sentiment. He predicted potential market volatility due to the options expiry, as market makers might close their hedging positions and short positions in Bitcoin.
As 2024 came to a close, Bitcoin faced a critical juncture. The massive options expiry and year-end profit-taking created an atmosphere of uncertainty. Institutional interest remained strong, but short-term volatility loomed on the horizon.
Traders and investors closely watched Bitcoin’s performance in the final days of this record-breaking year, questioning whether it could maintain its position above the $90,000 support level.
Bitcoin’s Year-End Rollercoaster: Market Makers Navigate Volatility
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Crypto — Live Market Board
-0.26%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| BTC | 63,384 | -0.26% | -47.24% | 63,552 | 64,346 | 63,305 | 22,774,743,040 |
| ETH | 1,886 | +0.26% | -58.90% | 1,881 | 1,920 | 1,879 | 7,916,475,392 |
| SOL | 75.89 | -0.40% | -60.44% | 76.20 | 76.99 | 75.39 | 1,473,821,056 |
| XRP | 1.01 | -1.15% | -69.07% | 1.02 | 1.02 | 1.01 | 1,144,044,416 |
| BNB | 609.60 | -1.12% | -26.81% | 616.50 | 619.30 | 609.23 | 1,266,706,432 |
| ADA | 0.18 | -1.98% | -78.22% | 0.19 | 0.19 | 0.18 | 238,085,632 |
| DOGE | 0.07 | -1.56% | -70.00% | 0.07 | 0.07 | 0.07 | 553,256,192 |
| AVAX | 6.38 | +1.04% | -74.11% | 6.32 | 6.42 | 6.21 | 248,470,560 |
| LINK | 8.77 | -0.06% | -62.73% | 8.77 | 8.87 | 8.68 | 317,054,880 |
| DOT | 0.78 | -0.75% | -81.11% | 0.79 | 0.80 | 0.78 | 43,490,492 |
| LTC | 45.08 | -0.85% | -65.45% | 45.47 | 45.59 | 44.98 | 143,727,712 |
| BCH | 213.85 | +0.10% | -65.44% | 213.64 | 215.69 | 212.54 | 137,956,688 |
| TRX | 0.34 | +0.28% | -4.73% | 0.33 | 0.34 | 0.33 | 436,576,064 |
| XLM | 0.16 | -1.33% | -64.46% | 0.16 | 0.16 | 0.16 | 89,559,864 |
| HBAR | 0.07 | -0.53% | -74.67% | 0.07 | 0.07 | 0.07 | 22,546,186 |
| NEAR | 1.65 | +2.42% | -40.55% | 1.62 | 1.68 | 1.61 | 187,591,264 |
| ATOM | 1.40 | -2.36% | -70.15% | 1.44 | 1.44 | 1.40 | 18,626,964 |
| AAVE | 89.06 | +0.93% | -72.33% | 88.24 | 90.20 | 88.19 | 129,099,704 |
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