In December, the crypto market is about to explode—three heavy bombs will detonate simultaneously this month.
The Federal Reserve's interest rate decision, non-farm payroll data, and the largest options expiry week in history are all happening at the same time, which could cause Bitcoin's price to fluctuate like a roller coaster, with one-way volatility exceeding 10% being quite normal.
**Bomb One: Federal Reserve's Interest Rate Meeting on December 11**
The market bets on a 65% probability of a 25 basis point rate cut. If Powell speaks "softly" enough that day, hinting at continued easing of monetary policy, Bitcoin is likely to soar to $110,000.
But don't celebrate too early—what if Old Bao suddenly adopts a tougher stance on inflation? Do you remember the plunge on December 1st? It evaporated 4.3% in a day. History may repeat itself.
**Bomb II: December 16 Non-Farm Data**
If the employment data is disappointing (for example, if new jobs turn negative), the expectations for interest rate cuts will be stronger, and risk assets should theoretically rise.
However, there is a trap here: the market has already priced in the expectation of interest rate cuts. Once the data is released, it may be the time for "good news to be realized"—profit-taking could lead to a frantic exit, causing prices to turn down instead.
**Bomb Three: December 20th "Triple Witching Day" Options Expiration**
On this day, approximately $6.5 trillion in options contracts will expire, and the fluctuations in the S&P 500 will resonate through the crypto market like seismic waves.
By flipping through historical data, you will find that: within two days before and after the delivery, Bitcoin often performs the "first pump then dump" or "first dump then pump" routine, with a volatility of 5%-8% being quite common.
**How can ordinary players survive?**
**Spot traders: Enter in batches, don't go all in** Buy in batches when it drops below $88,000 (previous low support level), and sell in batches when it rises above $110,000. Focus on allocating mainstream coins like BTC and ETH that are resilient, and it's best to avoid those altcoins that have skyrocketed.
**Contract Party: Values Life More Than Profit** Leverage should be controlled within 3 times, and a single position should not exceed 10% of the total funds——a spike liquidation like this is enough to make you regret for a lifetime. Try not to open new positions 4 hours before and after the key dates (12/11, 12/20), wait until the storm passes.
**Focus on capital movement** If Bitcoin ETFs experience consecutive large net inflows (over $300 million in a single day), it indicates that institutions are accumulating positions, which can be followed up. But if the USDT premium rate suddenly plummets, that's a signal that funds are fleeing, so withdraw quickly.
**Key Point: Volatility itself is not scary, loss of control is what is fatal.**
In December, if the volatility skyrockets to over 80%, short-term experts could triple their monthly returns.
But the premise is: you have to keep 50% of cash on hand, so you won't be forced to cut losses by extreme market conditions.
In the face of such a highly volatile market, don't strain yourself trying to guess where the top and bottom are—that's a job for the gods. What you need to do is prepare a response plan in advance: what to do if it rises? What to do if it falls? What to do if it consolidates?
History has repeatedly proven: major events can lead to devastating losses or silent profits. The difference lies in whether you are prepared.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
In December, the crypto market is about to explode—three heavy bombs will detonate simultaneously this month.
The Federal Reserve's interest rate decision, non-farm payroll data, and the largest options expiry week in history are all happening at the same time, which could cause Bitcoin's price to fluctuate like a roller coaster, with one-way volatility exceeding 10% being quite normal.
**Bomb One: Federal Reserve's Interest Rate Meeting on December 11**
The market bets on a 65% probability of a 25 basis point rate cut. If Powell speaks "softly" enough that day, hinting at continued easing of monetary policy, Bitcoin is likely to soar to $110,000.
But don't celebrate too early—what if Old Bao suddenly adopts a tougher stance on inflation? Do you remember the plunge on December 1st? It evaporated 4.3% in a day. History may repeat itself.
**Bomb II: December 16 Non-Farm Data**
If the employment data is disappointing (for example, if new jobs turn negative), the expectations for interest rate cuts will be stronger, and risk assets should theoretically rise.
However, there is a trap here: the market has already priced in the expectation of interest rate cuts. Once the data is released, it may be the time for "good news to be realized"—profit-taking could lead to a frantic exit, causing prices to turn down instead.
**Bomb Three: December 20th "Triple Witching Day" Options Expiration**
On this day, approximately $6.5 trillion in options contracts will expire, and the fluctuations in the S&P 500 will resonate through the crypto market like seismic waves.
By flipping through historical data, you will find that: within two days before and after the delivery, Bitcoin often performs the "first pump then dump" or "first dump then pump" routine, with a volatility of 5%-8% being quite common.
**How can ordinary players survive?**
**Spot traders: Enter in batches, don't go all in**
Buy in batches when it drops below $88,000 (previous low support level), and sell in batches when it rises above $110,000.
Focus on allocating mainstream coins like BTC and ETH that are resilient, and it's best to avoid those altcoins that have skyrocketed.
**Contract Party: Values Life More Than Profit**
Leverage should be controlled within 3 times, and a single position should not exceed 10% of the total funds——a spike liquidation like this is enough to make you regret for a lifetime.
Try not to open new positions 4 hours before and after the key dates (12/11, 12/20), wait until the storm passes.
**Focus on capital movement**
If Bitcoin ETFs experience consecutive large net inflows (over $300 million in a single day), it indicates that institutions are accumulating positions, which can be followed up.
But if the USDT premium rate suddenly plummets, that's a signal that funds are fleeing, so withdraw quickly.
**Key Point: Volatility itself is not scary, loss of control is what is fatal.**
In December, if the volatility skyrockets to over 80%, short-term experts could triple their monthly returns.
But the premise is: you have to keep 50% of cash on hand, so you won't be forced to cut losses by extreme market conditions.
In the face of such a highly volatile market, don't strain yourself trying to guess where the top and bottom are—that's a job for the gods. What you need to do is prepare a response plan in advance: what to do if it rises? What to do if it falls? What to do if it consolidates?
History has repeatedly proven: major events can lead to devastating losses or silent profits. The difference lies in whether you are prepared.