TechFlow news, December 24 — QCP Capital stated that after last week's shakeout, spot markets continue to trade sideways ahead of the holiday season. While this week appears calm on the surface, all eyes are on Friday's major expiry, when nearly $20 billion in notional BTC and ETH options will expire—accounting for almost half of Deribit's total open interest.
QCP Capital believes there could be a typical end-of-quarter volatility sell-off following expiry, especially if spot prices remain range-bound and option sellers continue to offload positions. Most option sellers must wait for collateral to be released after expiry, whereas call buyers likely have already rolled out most of their positions. However, volatility may remain firm if BTC successfully breaks above $100K.
In the meantime, as BTC continues to linger below $100,000, we might see altcoins start to catch up again. A month ago, when BTC was trading at these levels, ETH/BTC rebounded from its 0.032 support level, showing a similar pattern. Currently, BTC's market dominance stands at 58%, and we're closely watching whether this ratio sees a significant drop, which would signal capital rotating out of BTC into altcoins.
