Bitcoin bulls have strong incentives to push the BTC price above $70,000 on May 31, but the clock is ticking.) investors are typically bullish, and despite multiple failed attempts to sustain prices above $71,000, derivatives betting on $80,000 and $90,000 continue to proliferate. This behavior is driven by expectations of high-volatility events such as geopolitical tensions, socio-political changes, U.S. presidential support, and increased corporate adoption of Bitcoin.
The Nasdaq Composite index breaking its all-time high above 17,000 points on May 28 indicates that investors are more confident in the U.S. Federal Reserve’s soft landing plan. This plan aims for inflation to return to its 2% target while corporate earnings remain favorable for most sectors. This scenario creates a positive outlook for risk-on assets, including Bitcoin, as reduced interest rates are anticipated.
To interpret the odds being placed for each BTC expiry price level, it is essential to analyze the open interest of the calls and puts instruments.Although call options dominate with a 70% higher notional value, Deribit’s $4.62 billion open interest will likely be much lower since 99% of these instruments will be deemed null if BTC trades below $70,000 on May 31. Similarly, put option investors will be disappointed if Bitcoin remains near $67,800 on the monthly expiry, as only 5% of those $1.
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Source: Cointelegraph - 🏆 562. / 51 Read more »