Bitcoin: Is This the End…Or Just Tuesday?

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Right. So, apparently some people are selling their Bitcoins. Yes, you heard correctly. After all the hype, the promises of digital gold, and the general air of ‘this is the future’ – people are, brace yourselves, taking profit. US-listed spot Bitcoin ETFs have experienced what the financial wizards call “net outflows”. Which, translated from Economist, means money is going out. This, naturally, has caused a bit of a wobble. At last count, Bitcoin was ‘worth’ around $88,750 💰, which is down a perfectly respectable 27% from its peak of $125,100 back in October. A peak which, let’s be honest, felt suspiciously like someone was inflating a balloon.

They keep talking about “options expiry” too. Sounds like something you’d find in a wizard’s shop, doesn’t it?🧙‍♂️ Apparently, a particularly large one landed on December 26th, and it has ‘pinned’ the price. Which means, until something spectacularly interesting happens, it’s likely to just… sit there. Waiting. Like a particularly stubborn troll under a bridge.

Market Flows And Options Pressure

The aforementioned outflows from these ETFs have apparently removed a ‘key support for price’. Frankly, the idea that Bitcoin needs support feels faintly ridiculous. Shouldn’t something this revolutionary be standing on its own two feet? The Crypto Fear & Greed Index, for its part, thinks everyone is in ‘Extreme Fear’. Which is… well, it’s a bit of a self-fulfilling prophecy, isn’t it? 😨

These options things concentrate bets, they say. It’s like a very complicated game of chance, where everyone is trying to predict the next roll of the dice. When the bets are settled, the market needs a ‘catalyst’ – a fancy word for a good excuse to move the price again.

Strong Fundamentals

Now, the people running large Bitcoin treasuries – those who are invested enough to have entire departments devoted to it – are saying don’t panic! Phong Le, CEO of Strategy, assures us the ‘fundamentals’ are ‘solid’. Which is reassuring. Potentially. He apparently doesn’t fuss too much about the short-term performance. Probably because he’s too busy counting his… holdings.

Strategy’s market value relative to its Bitcoin holdings (mNAV) has dipped below 1. Which, according to the experts, is… not ideal. They’ve got 671,268 Bitcoin, worth around $58 billion. Which is still a lot of Bitcoin. But a declining price does tend to mess with the numbers. 🧐

Traditional Banks Trying To Catch Up

Apparently, the aforementioned Le and Michael Saylor (the name sounds suspiciously like a villain in a science fiction novel) have been chatting with banks in the US and the UAE. All about how to deal with the growing number of people asking about Bitcoin. Because, naturally, everyone wants a piece of the digital pie. Even the banks.

Someone at Galaxy Digital predicted the US government might start hoarding Bitcoin. Donald Trump even signed an executive order for a ‘Strategic Bitcoin Reserve’. Still waiting for the details on that one. Probably filed under ‘Things We’ll Get Around To Eventually’.

Policy Signals And Market Reaction

Having the government on your side is good, of course. But governments are notoriously slow to change their minds. And markets are even slower to react to those changes. So, while support from the powers that be is a plus, it doesn’t guarantee an immediate surge in price.

The whole thing is, frankly, a bit messy. Long-term believers are still building their Bitcoin stashes. But short-term traders are jittery, and the fear index is stuck on ‘Extreme’. So, it’s a bit of a waiting game. See which signal is louder – the promises of a bright future or the grumbling about the current state of things. And try not to lose too much sleep over it. It’s only money, after all. Though, to some, it is the future. Maybe. 🤷

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2025-12-26 09:14