Bitcoin calm could lead to altcoins rally, with $90,000 seen as ‘attractive’

Traders expect Bitcoin (BTC) to remain volatile with the potential for it to move into altcoins, as major options expiration impacts market dynamics in the upcoming festive week.

“All eyes are on the massive expiration on Friday, where nearly $20 billion in virtual currency across BTC and ETH options will expire,” Singapore-based QCP Capital said in a radio message early Tuesday. “This represents nearly half of the total OI on Deribit. We believe it is quite possible especially if the spot price continues to range here and as option sellers continue to place short trades.”

“Rolling over” means that instead of letting their options expire, traders roll their positions to later expiration dates. This is often done to keep traders active if they still believe in the market forecast.

High volatility can be beneficial to options buyers because it increases the chance that the option will be “in the money” (profitable) at some point before expiration – creating a profit for the buyers.

“As BTC continues to struggle below 100k, we could also see altcoins starting to catch up again,” QCP said, adding that a similar trend was observed a month ago when Bitcoin was trading at current price levels. The Ethereum/Bitcoin ratio bounced from the 0.032 support level at the time, As statedStimulating movement in alternative currencies.

The cryptocurrency market often goes through cycles in which Bitcoin leads, followed by altcoins. Investors making new gains in the market seek additional returns, and the influx of capital into altcoins leads to wild rises in short periods.

Bitcoin is currently going through one of its worst Decembers yet, easing its seasonal bull run with a 2% decline over the past 30 days. Amal A “santa gathering” – As assets tend to rise in the holiday week – they were affected by profit-taking and a cautious mood after weeks of rising prices.

Some Warning of further declines The US Federal Reserve has signaled smaller interest rate cuts for next year while emphasizing that it bans state holdings of Bitcoin and is not seeking to change the law to do so.

But a drop to the $90,000 level could bring renewed opportunities for market traders, FxPro’s Alex Kuptsikevich told CoinDesk in an email.

“In a potential shock scenario, Bitcoin could suddenly fall to the $70,000 region. However, there are greater chances that a pullback to $90,000 in the next two weeks will be attractive enough for buyers to halt selling.” Markets continue to digest the tougher tone “For the Fed, which is reinforced by the accumulated desire to take profits after a strong year.”