Negentropic, co-founder of on-chain data analytics firm Glassnode, commented on X (formerly Twitter) on December 26th that Bitcoin's price is trending in a positive direction. He explained, "Even during price declines, there has been a steady influx of buyers, and the recent lows have also shown a solid performance."
He particularly noted that excessive hedging pressure in Bitcoin derivatives has eased. With the recent expiration of the largest-ever options contract, worth $23.6 billion, he concluded that structural restraints in the market are being lifted. Negentropic analyzed that "with the weakening of hedging funds, Bitcoin's price is no longer subject to artificial constraints," and that "the price discovery mechanism, which reflects actual supply and demand, is reactivating."
He also added that the expansion of the US money supply is creating a medium- to long-term bullish environment for Bitcoin. The US M2 money supply reached a record high of $22.3 trillion in November, up 4.3% year-on-year. Real M2 has also increased for 15 consecutive months, indicating that overall liquidity flows are still expanding.
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