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

Odaily reported that Sean McNulty, the trading director of liquidity provider Arbelos Markets, said: "MicroStrategy's announcement to issue more shares next year to buy more Bit has pushed up the price of Bit. The market has a forward-looking attitude towards MicroStrategy's Bit purchase, which is the main reason for the market rally." According to documents filed with the US SEC on December 23, MicroStrategy is seeking to increase the authorized number of Class A common shares and preferred shares. So far this year, Bit has risen 135%, outperforming traditional investments such as global stocks and gold. In addition, Bit options with a notional value of $13.95 billion and Eth options with a notional value of $3.77 billion on Deribit will expire and be settled on Friday, with the platform's open contract positions exceeding $43 billion, a new high. McNulty added: "Market makers may unwind their hedges, which may lead to market volatility on Friday."