Bitcoin and Yen Traders Prepare for Volatility on December 27

Hey there! If you’re into trading Bitcoin or keeping an eye on the Japanese Yen, you’re in for an interesting day tomorrow. Let’s break down what’s happening on December 27th:

First up, Japan is gearing up to release some important economic data, including inflation rates, jobless numbers, retail sales, and industrial production figures for November. The Bank of Japan will also be sharing the summary of opinions from its recent policy meeting.

So, what could happen? Well, if the data is positive and the BoJ decides to hold off on a rate hike, we might see the USDJPY breaking above 158. On the other hand, if the BoJ hints at a rate hike, we could see the USDJPY dropping to 155.

Now, onto Bitcoin. Tomorrow marks a big day for crypto investors as over US$14.5 billion worth of Bitcoin options are set to expire. These options can impact Bitcoin’s price, so there might be some increased volatility. Despite a recent drop, Bitcoin has been trading between $92k and $100k, with hopes of climbing back up over $100,000 post-expiry.

Looking ahead, there are some interesting developments expected in the crypto space. Many are hopeful that certain US officials will be crypto-friendly, potentially driving Bitcoin prices higher. MicroStrategy is also planning to buy more Bitcoin over the next few years, which could support Bitcoin prices.

And a fun fact from the options market: the largest concentration of call options is at the $110,000 strike price, expiring at the end of January 2025. If these bets play out, we might see further gains for Bitcoin in the coming month.

So, keep an eye out for these events tomorrow, and happy trading!