In the final week of December, significant changes were observed in market trends primarily due to institutional investors exiting the market and increased selling activity driven by tax payment requirements. Tom Lee, Chairman of BitMEX, noted that during the year-end holiday period, institutional investors often close their positions, which amplifies the influence of algorithmic and robotic trading programs on market movements. The need to fulfill tax obligations also contributes to heightened selling, particularly impacting cryptocurrency and related stock prices in the last days of December. Lee further mentioned that BitMEX recently purchased 44,463 Ethereum (ETH) and is adjusting its market strategy to navigate these seasonal trends for improved performance. This time of year is generally marked by reduced activity in the cryptocurrency market due to limited investor interest during holidays; however, tax-driven selling can cause temporary price volatility. Such fluctuations pose risks to investors as sudden price swings become common. Changes in strategy by major players like BitMEX and the withdrawal of institutional investments significantly influence market direction, underscoring their importance to the cryptocurrency industry. The coming days will reveal how the market responds to this pressure and whether new investors can capitalize on the opportunity.
Source: binance
