The Potential Impact of the $2 Billion Bitcoin Options Expiry
The upcoming $2 billion Bitcoin (BTC) monthly options expiry on July 28 could potentially establish $29,500 as a support level. Some argue that the recent U.S. Federal Reserve interest rate increase to 5.25% had a detrimental effect on risk-on assets like cryptocurrencies. However, Bitcoin bulls believe that the full impact of a tighter economic policy takes time to influence the markets.
Main Breakdowns
- June and May monthly expiries did not cause significant volatility
- Bulls have regulatory and ETF momentum on their side
- Positive corporate earnings and consumer confidence support bullish momentum
- Data shows excessive optimism from Bitcoin bulls
- Bears aim for a sub-$29,000 price to secure profit
When analyzing a broader mid-to-long term scenario, Bitcoin bears may have the upper hand due to the added incentives of higher fixed-income returns resulting from reduced inflation and increased interest rates. However, considering the overall bullish momentum in the economy, there’s actually a favorable outlook for Bitcoin to break above $31,000 in the following weeks.
Hot Take
The $2 billion Bitcoin options expiry on July 28 could potentially establish $29,500 as a support level. While bears aim for a sub-$29,000 price to secure profit, overall bullish momentum in the economy suggests a favorable outlook for Bitcoin to break above $31,000 in the following weeks.
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