Greeks.Live: The momentum for the bull market to restart is very limited

Greeks.Live researcher Adam posted on social media that at the recently concluded Federal Reserve meeting, a 25 basis point rate cut was expected, and the Fed announced it would restart the purchase of $40 billion in short-term U.S. Treasury bills (T-bills). The dovish stance can effectively supplement the liquidity of the financial system, which undoubtedly is a clear positive for the market.

However, it is too early to mention that QE will restart the bull market. With Christmas and year-end settlements approaching, this time of year has historically been the period of lowest liquidity in the crypto market, with reduced market activity and limited momentum for a bull market restart.

From the cryptocurrency options data, there is currently over 50% of the options positions accumulated for the end of December, with BTC's maximum pain point at the $100,000 integer level and ETH's maximum pain point at $3,200. The implied volatility for the main expiration this month is showing a downward trend, and the market's expectations for volatility this month are gradually decreasing.

In summary, the crypto market is currently quite weak, with poor liquidity at the end of the year and a gloomy market sentiment. A slow decline is the most mainstream view in the options market, but at the same time, one should also be wary of sudden positive news that could lead to a reversal.