Analysis: Bitcoin derivatives suppression lifted, price discovery mechanism returns.

According to ME News, on December 26th (UTC+8), Glassnode co-founder Negentropic published an article stating that the current Bitcoin price structure is showing positive changes. Recent pullbacks have consistently received buying support, and previous lows remain intact, indicating a constructive market trend. A key structural change is that the "balance effect" of derivatives has largely dissipated. With the largest Bitcoin options expiration event in history, totaling approximately $23.6 billion, the price suppression dominated by hedging activities in recent weeks is ending. Negentropic stated that before options expiration, market rallies are often suppressed by mechanical hedging rather than by genuine supply and demand. As related funds flow out, BTC is no longer "pegged," and the price structure is expected to be driven by the market itself again, with the price discovery mechanism returning and the upward bias gradually strengthening. From a macro perspective, he emphasized that the liquidity environment is still improving. The US M2 money supply grew by 4.3% year-on-year, reaching a record high of $22.3 trillion in November, marking the 21st consecutive month of expansion and exceeding the 2022 peak by approximately $400 billion. Even after adjusting for inflation, real M2 still grew by 1.5% year-on-year, continuing its upward trend for 15 consecutive months. The long-term trend remains clear—fiat currency dilution has not stopped, and macroeconomic and structural factors are creating a new favorable environment for Bitcoin. (Source: ME)