Crypto News

Bitcoin is declining as a record $28 billion Boxing Day options expiry becomes a key volatility driver, with analysts highlighting the massive December 26th contract settlement as critical factor influencing near-term price action. This extraordinary options expiry volume—representing approximately 280,000 BTC at current prices around $100,000—creates mechanical market dynamics where positioning, max pain levels, and dealer hedging flows can override fundamental factors, potentially explaining recent price weakness and raising questions about whether post-expiry relief or continued volatility awaits cryptocurrency markets.

The AI trade remains very much alive according to investment banker Joe Nardini, as cryptocurrency miners pivot to high-performance computing (HPC) and buyers chase increasingly scarce power infrastructure, reports @willcanny99. This convergence of crypto mining assets with AI computational demand creates fascinating market dynamics where Bitcoin's struggles paradoxically enhance miner valuations through infrastructure repurposing, though questions remain about whether mining facilities can genuinely compete with purpose-built data centers or whether the pivot represents desperate rebranding by struggling operations seeking relevance amid cryptocurrency bear markets.

Perpetual futures open interest for Bitcoin increased from 304,000 BTC to 310,000 BTC on Monday as the cryptocurrency's price briefly touched $90,000, signaling renewed interest in leveraged long positions ahead of year-end trading according to blockchain analytics firm Glassnode. This 2% increase in open interest accompanying price appreciation suggests fresh capital entering leveraged positions rather than mere price-driven expansion, potentially contradicting earlier narratives about muted year-end activity while raising questions about whether building leverage creates vulnerability for the exact Q1 2026 crash scenarios that Anthony Pompliano suggested Bitcoin might avoid.

Palmer Luckey has raised $350 million for Erebor, valuing the digital bank at approximately $4.3 billion as it moves toward launch with FDIC approval, according to Axios. The Oculus founder and defense tech entrepreneur's entry into fintech represents remarkable valuation for pre-launch bank and raises questions about whether investors are backing genuinely innovative banking model or simply betting on Luckey's track record of building billion-dollar companies, while the timing amid regional banking stress and cryptocurrency integration ambitions creates both opportunity and scrutiny.

Bitcoin entrepreneur Anthony Pompliano argues that the cryptocurrency's lack of dramatic year-end rally may actually prevent a hard crash in Q1 2026, suggesting subdued 2025 performance could establish healthier foundation for sustainable growth. This contrarian perspective reframes Bitcoin's 5% year-to-date decline and failure to generate traditional bull market euphoria as potential blessing in disguise, though the analysis raises questions about whether absence of parabolic gains simply reflects weakened demand rather than prudent market consolidation preventing future crashes.

Galaxy Digital's Head of Research Alex Thorn argues that Bitcoin never actually crossed the psychologically significant $100,000 threshold when adjusted for inflation, with the cryptocurrency's nominal $126,000 peak translating to just $99,848 in 2020 dollar terms. This inflation-adjustment perspective reframes Bitcoin's price history and raises uncomfortable questions about whether the cryptocurrency has genuinely created real wealth or simply kept pace with monetary debasement, potentially undermining narratives about Bitcoin as superior inflation hedge while ironically demonstrating the very currency debasement concerns that motivate cryptocurrency adoption.

Billionaire real estate investor Grant Cardone says he's buying hundreds of Bitcoin on every price dip, predicting the cryptocurrency will reach $1 million "easily" within five years or "maybe sooner." This bullish positioning comes despite Bitcoin's 5% year-to-date decline and gold's dramatic 69% outperformance in 2025, raising questions about whether Cardone's aggressive accumulation represents contrarian conviction or promotional messaging from entrepreneur known for hyperbolic marketing of investment courses and real estate funds.

Crypto market maker DWF Labs has completed its first physical gold trade involving a 25-kilogram bar, signaling an expansion into legacy commodities as gold prices hit record highs above $4,500 per ounce. This strategic pivot by a prominent cryptocurrency firm into traditional hard assets reflects pragmatic capital allocation amid gold's 69% year-to-date rally vastly outperforming digital assets, though the move raises questions about commitment to cryptocurrency's value proposition and whether it signals broader industry loss of confidence in digital-only strategies.

Gold has reached a new all-time high, surpassing $4,500 per ounce for the first time in history. This milestone extends gold's remarkable 2025 rally that has seen the precious metal gain approximately 69% year-to-date, far outperforming cryptocurrencies and traditional equities while drawing capital away from digital assets and challenging Bitcoin's narrative as superior inflation hedge and store of value.

JPMorgan is considering offering spot and derivatives cryptocurrency trading services to its institutional clients, building on recent blockchain activities and following competitors like Morgan Stanley into the digital asset space. This potential move by America's largest bank represents significant validation of cryptocurrency markets' maturation and institutional demand, though the bank's historical skepticism toward crypto under CEO Jamie Dimon creates tension with this strategic evolution.