Bitcoin News: $13 billion in BTC Options Expiry & Its Potential Impact

Moreover, the BTC deposits on exchanges from the large holder cohort were approaching levels last seen towards the end of October. This could signal that they are preparing to sell more coins.

Incoming demand from dip buyers may thus act as exit liquidity for large holders. This could also curtail BTCs recovery attempts, as observed in the last few days.

The large inflows into exchanges suggest that Bitcoin USD may not yet be ready for a robust recovery. But does this mean that the cryptocurrency will extend its downside below the recent lows？

Bitcoin Already Bottomed at $80,000？

Inflows into exchanges from large holder accounts suggest that Bitcoin USD may not be fully rid of the bears. However, some analysts believe that the wave of selling pressure may find support near the $80,000.

Among them is BitMex founder Arthur Hayes, who believes that BTC price may have bottomed out near $80,000 during the recent crash. His prediction was largely based on upcoming economic events such as the end of the Federal Reserves Quantitative Tightening.

Also, the US banks engaged in expanded lending in November. A combination of these developments highlights improving liquidity conditions, which may favor a risk-on sentiment in December.

Arthur Hayes Bitcoin (BTC) Bottom Prediction | Source: CryptosRus, X

The changing liquidity situation may favor assets such as stocks in the coming days. Moreover, Bitcoin USD continued to show signs of recovery this week despite recent outflows.

The leading cryptocurrency reclaimed the $90,000 price level in the last 24 hours, regardless of outflows from whales. This signaled accelerating accumulation at recent lows, which consequently supported the more than 10% recovery from last weeks lows.

Although the recovering sentiment may have aided BTC price performance this week, uncertainty remained high. In other words, investors were still on the fence on whether this recovery will last. Moreover, the upcoming Bitcoin options expiry could throw a wrench in the engine of market recovery.