Based on current market information and analyses from multiple institutions, during Christmas period Bitcoin and Ethereum are experiencing a “liquidity contraction”


📉
The following is the general consensus among several institutions regarding the current market:
1. Core characteristic: Liquidity contraction
· Performance: Market participation significantly decreases as European and American institutions and retail traders take holidays.
· Impact: Reduced liquidity may lead to wider bid-ask spreads and amplified price impact for the same trading volume. Professional data shows that open interest in BTC and ETH perpetual contracts on major exchanges has decreased significantly.
2. General market trend: Range-bound oscillation and low volatility
· Bitcoin: Price fluctuates narrowly between $86,500 and $92,000, lacking a clear direction.
· Ethereum: Hovering below key resistance levels at $2,940 - $3,177.
3. A key risk event
· Large-scale options expiration: Approximately $23.7 billion worth of BTC options and a large amount of ETH options will expire on December 27th (Friday).
· Impact: In a low liquidity environment, this could trigger short-term sharp volatility (historically, Bitcoin has experienced 5%-7% fluctuations during Christmas week).
BTC1.38%
ETH1.03%
View Original
post-image
post-image
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)