12/24

BITX Jumps 13.3% as Bitcoin Rises Ahead of Major Options Expiry

The 2x Bitcoin Strategy ETF (BITX) closed on December 24th up 13.3% to $59.12, driven by a 3.52% increase in Bitcoin's price to $98,092.69. The surge in Bitcoin's value is primarily attributed to the anticipation of a significant options expiry event later this week, with nearly $20 billion worth of Bitcoin and Ethereum options set to expire. This event is expected to introduce heightened volatility, as it represents almost half of the total open interest on Deribit, a leading cryptocurrency derivatives exchange. Market participants are also considering a potential shift into altcoins, which could further influence Bitcoin's price dynamics. Additionally, the U.S. Federal Reserve's recent hawkish monetary policy stance, characterized by a slower pace of rate cuts, has dampened speculative enthusiasm in the crypto market, leading to outflows from Bitcoin ETFs. Despite these factors, institutional investors like BlackRock continue to show a long-term bullish outlook on Bitcoin.