Golden Finance reports that Greeks.live macro analyst Adam posted on social media stating that at the recently concluded Federal Reserve meeting, a 25 basis point rate cut was expected, and the Fed announced it will restart the purchase of $40 billion worth of short-term US Treasury bills (T-bills). The dovish stance can effectively supplement the liquidity of the financial system and is undoubtedly a clear positive for the market.
However, it is premature to restart QE and expect a bull market now. Christmas and year-end settlements are approaching, and in previous years, this period has always been the worst for liquidity in the crypto market, with low market activity and limited momentum to restart a bull market.
Looking at cryptocurrency options data, currently, over 50% of options positions are accumulated by the end of December. The biggest pain points for BTC are at the $100,000 round number, and for ETH at $3,200. The implied volatility (IV) of main expiry dates has been decreasing throughout the month, indicating that the market’s expectation of volatility this month is gradually diminishing.
It is worth noting that Skew has shown a persistent negative bias this month, with Put prices significantly higher than Call options at the same Delta. This is mainly due to two reasons: first, the market is stable, and covered call strategies are once again mainstream, artificially suppressing Call prices; second, the recent crypto market has been weak, with many traders using put options as a hedge against declines.
Overall, the crypto market is currently quite weak, with poor liquidity at year-end and low market sentiment. The most mainstream options market view is a slow decline, but there is also a need to watch out for potential reversals caused by sudden positive market news (although the probability is relatively low).
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Bittensor (TAO) Hits a 3-Month Peak: What Caused the Rally and What Comes Next?
Many leading cryptocurrencies have posted slight declines or negligible increases over the past 24 hours, but this isn’t the case for Bittensor (TAO), whose price soared by 15%.
The question now is whether this momentum can hold or if a pullback is coming next.
Further Gains
CryptoPotato44m ago
Ethereum (ETH) on the Edge: Critical Level Stands Between New Bull Run and a Major Crash
While the second-largest cryptocurrency has registered a significant rebound over the past month, it remains at risk of plummeting to drastically low levels during this cycle.
On the other hand, some important indicators suggest that the worst might be over and the price could be gearing up for a m
CryptoPotato1h ago
Retail Sentiment Turns Bearish While Bitcoin Holdings Rise Across Both Small and Large Wallets
Bitcoin (BTC) suffered a fresh decline of nearly 4% on Friday as it slipped to $66,200, as conditions in the Middle East conflict remain extremely fragile.
Against this backdrop, retail traders grow increasingly bearish on the leading cryptocurrency, yet accumulation from different cohorts
CryptoPotato1h ago
Zcash Rally Gains Strength as Privacy Demand and ZODL Funding Lift ZEC
Key Insights:
The Zcash price rose above $235 with strong volumes, reflecting sustained institutional participation and signaling broader market confidence in privacy-focused digital assets.
The $25 million ZODL funding supports protocol upgrades, wallet growth, and shielded adoption,
CryptoNewsLand2h ago
XRP Faces Pressure as Network Usage and Momentum Decline
Key Insights
XRP Ledger transactions and active accounts dropped sharply, signaling reduced usage and weakening demand that directly impacts the asset’s broader market outlook.
Price continues to face resistance at key technical levels, while compression below moving averages reflects
CryptoNewsLand2h ago
Bitcoin Erases March Gains as Q1 Losses Top 25% Amid Geopolitical Friction
Bitcoin's price has declined below $66,000 amid geopolitical tensions and poor U.S. market performance, leading to significant losses in the crypto market. Investor sentiment is dampened as recession fears grow.
Coinpedia2h ago
