QCP: Weaker year-end liquidity may trigger greater volatility

According to DeepFlow TechFlow, on December 8, QCP released a briefing stating that Bitcoin experienced significant price fluctuations on Sunday, oscillating between $88,000 and $92,000 during a period of low liquidity, while Ethereum also saw sharp swings between $2,910 and $3,150. This suggests that market volatility is likely to intensify during the year-end holidays. Despite the notable price swings, the liquidation volume was only about $440 million, relatively low, reflecting a decline in overall market interest.

Institutional investors are quietly accumulating, with approximately 25,000 Bitcoin leaving centralized exchanges over the past two weeks. Bitcoin ETF and corporate holdings now exceed exchange reserves, indicating that supply is shifting toward long-term holders.

The Federal Reserve’s meeting on Wednesday has become a focal point, with expectations of a 25 basis point rate cut. The market is waiting for Bitcoin to break below $84,000 or above $100,000 to determine the next trend direction, and the options market has already begun preparing for potential significant volatility.