Bitcoin Price Climbs to $31.8K, But Derivatives Data Highlights BTC Bear Advantage
Bitcoin Price Follows XRP's Footsteps Rallying Near $32,000, But Price May Pull Back As Options Expires $720 million this week.
Market analysis
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This weekly Bitcoin Options expiry on July 14 could be a major turning point for market sentiment, potentially leading to a breach below the crucial $30,000 support level.
Despite the initial bullish push triggered by demand for spot Bitcoin exchange-traded funds (ETFs), recent macro data has not been supportive for risk assets.
Market sentiment analysis is crucial in assessing the chances of Bitcoin (BTC) holding above $30,000 by July 14. This level acts as a threshold that could provide bears with a perfect opportunity to profit up to $120 million until the option's weekly expiration.
Falling US Inflation Hurts Bitcoin in the Short TermIn June, the consumer price index in the United States stood at 3.0%, the lowest level since March 2021. This was mainly due to a 16.7% drop in the energy index. Although this indicates a slowdown in inflation, it remains above the Federal Reserve's 2% target, which is detrimental to Bitcoin, as higher interest rates encourage investors to turn to investments fixed income.
One could argue that in the short term, the drop in inflation reflects a successful intervention by the Fed and could be seen as a positive factor for Bitcoin's bullish momentum. However, on July 12, the US Dollar Index, which measures the strength of the dollar against major foreign currencies, hit its lowest level in 14 months.
Essentially, investor confidence in the Fed's ability to prevent a recession appears to be weakening. Wharton professor Jeremy Siegel suggested the US economy is "moving smoothly" with consumers appearing unaffected by higher borrowing costs. However, Sieg...
Bitcoin Price Follows XRP's Footsteps Rallying Near $32,000, But Price May Pull Back As Options Expires $720 million this week.
Market analysis
Join us on social networks
This weekly Bitcoin Options expiry on July 14 could be a major turning point for market sentiment, potentially leading to a breach below the crucial $30,000 support level.
Despite the initial bullish push triggered by demand for spot Bitcoin exchange-traded funds (ETFs), recent macro data has not been supportive for risk assets.
Market sentiment analysis is crucial in assessing the chances of Bitcoin (BTC) holding above $30,000 by July 14. This level acts as a threshold that could provide bears with a perfect opportunity to profit up to $120 million until the option's weekly expiration.
Falling US Inflation Hurts Bitcoin in the Short TermIn June, the consumer price index in the United States stood at 3.0%, the lowest level since March 2021. This was mainly due to a 16.7% drop in the energy index. Although this indicates a slowdown in inflation, it remains above the Federal Reserve's 2% target, which is detrimental to Bitcoin, as higher interest rates encourage investors to turn to investments fixed income.
One could argue that in the short term, the drop in inflation reflects a successful intervention by the Fed and could be seen as a positive factor for Bitcoin's bullish momentum. However, on July 12, the US Dollar Index, which measures the strength of the dollar against major foreign currencies, hit its lowest level in 14 months.
Essentially, investor confidence in the Fed's ability to prevent a recession appears to be weakening. Wharton professor Jeremy Siegel suggested the US economy is "moving smoothly" with consumers appearing unaffected by higher borrowing costs. However, Sieg...
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