QCP: BTC price is distorted due to thin liquidity during the holiday; directional choice depends on the return of liquidity.
TL;DR
QCP Capital notes Bitcoin's price is distorted by thin holiday liquidity, with a 2.6% rise driven by spot and perpetual buying. Directional clarity depends on liquidity returning, as high funding rates and option activity signal market caution.
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[QCP: BTC Price Distortion Due to Holiday Liquidity Shortages; Directional Choice Requires Liquidity Return] According to Mars Finance, on December 29th, QCP Capital analysis pointed out that BTC rose approximately 2.6% in the morning session, with insufficient holiday liquidity distorting price movements. Bitcoin was driven more by spot and perpetual buying than by liquidation. The perpetual funding rate for BTC on Deribit rose above 30%, indicating that traders are in a short-gamma state regarding the upward direction. If the price stabilizes above $94,000, it may amplify hedging buying. On the downside, the December $85,000 put options were not rolled over, and open interest decreased by approximately 50% after option expiration, reflecting market caution. A directional choice may require the return of liquidity.