Bitcoin targeted the $90,000 level on a box day, with BTC gaining over 2% during Friday's session, supported by the Asian market. At the same time, gold and silver reached new all-time highs, drawing attention to traditional assets as trading resumed after the holidays. Short-term movement remained within a range, but breakout attempts created noticeable volatility.
Bitcoin Aims for $90,000
BTC price made an attempt to retest the $90,000 mark, accompanied by significant gains at the end of the week. The Asian trading session helped maintain positive momentum, with Friday's growth exceeding 2% according to TradingView data. In this environment, market focus is on a potential breakout and subsequent dynamics following the holiday pause.
For a detailed discussion of recent signals, see the price analysis for this week, which covers both bullish and bearish indicators.
Impact of Options Expiry on Bitcoin
Before Wall Street opened, the market monitored a large Bitcoin options expiry worth nearly $24 billion, an event capable of temporarily altering hedging profiles among major players. As these contracts conclude, hedging pressure that previously restrained the price weakens, which many participants view as an opportunity to "cleanse" positions and potentially drive growth. This process typically increases short-term volatility during expiry days.
For an in-depth breakdown of the consequences of this significant expiry and its price impact, see the article what to expect after the record options expiry.
Bitcoin Price Analysis
The short-term market remained range-bound, with analysts noting the importance of the daily closing bar to confirm a breakout. Within 24 hours, liquidations totaling over $200 million occurred near the $90,000 level, according to CoinGlass data, indicating high speculative activity. Technically, the 50-day moving averages stood at $91,458 (SMA) and $92,651 (EMA), setting potential resistance points if the rally continues.
Evaluating the daily close and moving average dynamics will help gauge the strength of the current momentum; for more on forecasts and scenarios, see the price forecast overview.
Bitcoin Compared to Other Assets
Amid rising precious metals, silver has already surpassed Bitcoin in market capitalization, becoming the third-largest asset in relevant rankings, while gold remains first and Nvidia second, according to Infinite Market Cap data. This shift in attention among assets highlights that the current rallies in gold and silver are occurring alongside Bitcoin's recovery attempts.
For a comparison of current signals for Bitcoin and gold, see the detailed article Bitcoin and Gold, which explores possible market implications.
Why It Matters
If you mine Bitcoin, the direct link between BTC price and your daily operations manifests through revenue from selling mined coins. A rise to $90,000 increases potential profits from sales, while strong volatility complicates planning for sales and tax calculations. Additionally, major events like options expiries and mass liquidations can rapidly shift prices and affect rates within a single day.
For miners with smaller operations, this means that even maintaining the current operating model requires accounting for sharp intraday fluctuations and their impact on revenue and margins. Large liquidations and hedging shifts typically increase market unpredictability, which is crucial when deciding whether to sell or hold mined BTC.
What to Do?
- Monitor price and volatility: set alerts at key levels and pay attention to daily closes to decide when to sell portions of your mined coins.
- Plan sales and reserves: stagger sales across multiple price levels to reduce the risk of selling everything at the worst moment.
- Control operational costs: avoid abrupt changes to equipment profiles during high volatility without assessing impacts on profitability and power consumption.
- Document transactions and tax calculations: sharp price movements require careful record-keeping for accurate declarations and revenue accounting.