QCP Capital: BTC holiday rally driven by spot and perpetual buying as thin liquidity distorts price action

QCP Capital said on Dec. 29 that Bitcoin rose about 2.6% in early trading, with thin holiday liquidity contributing to distorted price action driven more by spot and perpetual buying than liquidations. Deribit perpetual funding rates climbed above 30%, indicating dealers are in a short gamma position on the upside and that a sustained break above $94,000 could amplify hedging demand. The firm noted December $85,000 put options were not rolled, and open interest dropped by around 50% after expiry, suggesting sidelined capital and that clearer directional positioning may wait until liquidity returns.