Crypto frenzy takes a break! Bitcoin falls below $42,000, Memecoin's rally stalls
Bitcoin fell below $42,000 for the first time in a week, while the recent rally in memecoins is showing signs of stagnation. Investors remain cautious about future volatility and are keeping an eye on the Bitcoin options expiring on December 29th. Meanwhile, memecoins like Dogwifhat and NFT tokens have recently experienced strong gains, but their prices are currently declining.
Zhitong App has learned that Bitcoin fell below $42,000 for the first time in a week, and the recent rally of memecoins has also shown signs of stagnation. On Tuesday, Bitcoin fell 4.3% to $41,656. Tokens with smaller scale and lower visibility, such as Solana and Avalanche, have all dropped more than 10%.
Jaime Baeza, CEO of the crypto hedge fund AnB Investments, said, "Looking ahead, due to year-end fund flows, options and futures expirations, as well as thin liquidity caused by holidays, I will remain cautious and be prepared for potential volatility this week."
Greg Moritz, co-founder of the crypto hedge fund AltTab Capital, said, "The main thing we are now focusing on is the Bitcoin options expiration on December 29th." "Typically, when we see so many options expiring, we expect significant volatility on that day."
A large number of Bitcoin options will expire on December 29th.
Due to the market's optimistic belief that the U.S. Securities and Exchange Commission will soon approve the trading of Bitcoin exchange-traded funds (ETFs), Bitcoin has surged more than 150% this year. Investors will know whether this bet will succeed by January 10th next year.
Meanwhile, recent memecoins like Dogwifhat and new non-fungible tokens (NFTs) have been surging. Many of these tokens have risen more than 1000% in a few days, with trading prices still below one cent. Now, this frenzy is subsiding, with Dogwifhat falling by about 30% and Bonk falling by about 15%.