Analysis: Crypto market makers may unwind hedges, potentially leading to market volatility on Friday

Odaily Planet Daily reported that Sean McNulty, Director of Trading at liquidity provider Arbelos Markets, stated: "MicroStrategy's announcement to issue more shares next year to purchase more Bitcoin has driven up Bitcoin prices. The market has a forward-looking attitude towards MicroStrategy's Bitcoin purchases, which is the biggest reason for the market rally."

According to a filing submitted to the U.S. SEC on December 23, MicroStrategy is seeking to increase the authorized share count for Class A common stock and preferred stock. Year-to-date, Bitcoin has risen 135%, surpassing the returns of traditional investments like global stocks and gold.

Additionally, Bitcoin options with a notional value of $13.95 billion and Ethereum options worth $3.77 billion will expire on Friday on Deribit, where the total open contract positions exceed $43 billion, setting a new record. McNulty added: "Market makers may unwind their hedges, which could lead to market volatility on Friday." (Bloomberg)