Bitcoin

Bitcoin Price Drops to $62K, Optimistic Options Traders Bet on $80K by End of Month

Published

12 months ago

8 May, 2024

Bitcoin Price Drops to $62K, Optimistic Options Traders Bet on $80K by End of Month

(Kitco News) –Bitcoin (Bitcoin) bulls are struggling to hold support at $62,000 in early Wednesday trading after bears successfully breached the $63,000 level late on Tuesday as they push to regain lost ground on battle for control of price action.

Weakness in financial markets returned after Minneapolis Federal Reserve Bank President Neel Kashkari said the central bank is likely to keep interest rates where they are until policymakers are sure inflation is on track to rise. your goal.

“The most likely scenario is that we are going to sit here for a long period of time,” he said while speaking at the Milken Institute Global Conference on Tuesday. “If inflation starts to fall again or we [see] some sharp weakening in the labor market that could lead us to reduce interest rates.”

Kashkari also addressed the possibility of a rise in interest rates, which gave many investors a reason to pause and reevaluate their exposure to the markets.

“Or if we eventually become convinced that inflation is embedded or consolidated now at 3% and that we need to go up, we would do that if necessary,” Kashkari said.

The major indices opened lower on Tuesday following the aggressive statement, but have returned to neutral or positive territory at the time of writing.

Data provided by TradingView shows that Bitcoin hit a low of $61,755 shortly after the US market opened, but has since rebounded above $62,600.

BTC/USD Chart by TradingView

At the time of writing, BTC is trading at $62,210, down 2.6% on the 24-hour chart.

“When the price of Bitcoin fell 12% in a few days last week, even the most bullish crypto investors feared the worst. Which makes its strong recovery since hitting a two-month low on May 1 all the more remarkable,” said Neil Roarty, analyst at the investment platform. Stock Analysis.

“The price of Bitcoin is now comfortably above $60,000, helped in no small part by confirmation from the US Federal Reserve that interest rate hikes are unlikely in the near future,” he added. “But there is debate about what happens from here.”

“The most bullish options traders are targeting $100,000 by the end of this year. To reach that price, Bitcoin will have to show even greater resilience in the face of increasing regulatory scrutiny and greater political and economic uncertainty,” said Roarty. “Given the gains of recent months, many will support Bitcoin to do just that.”

Macro pressures weigh on crypto market

“The recent selling pressure appears more macroeconomic than Bitcoin-focused,” James Davies, co-founder and CPO of Crypto Valley Exchange, said in a note to Kitco Crypto. “Tech stocks fell and corporate AI performance failed to live up to expectations.”

“In the US, the DTCC haircut has reduced the expected near-term attractiveness of ETFs, reducing speculative views of additional cash inflows in the near term,” he said. “With the Fed all but ruling out a rate hike in response to overly persistent inflation, the U.S. position is bullish across the economy in the near term.”

“More distant transitions, with the Indian elections and Indonesian government changes bringing uncertainty in markets with large Bitcoin holdings, it is certainly a wait-and-see time for those with significant holdings to get a bearing on the market as a whole,” Davies noted.

Referencing open interests data provided by Deribit, Davies said options traders “appear to have significant bets that Bitcoin will rise to $80,000 by the end of May, which would be a new all-time high.”

Given the recent pullback below $60,000, “some of these may be historic bets, but there hasn’t been much coverage of their positions, so some faith remains,” he said. “Even more convincing, however, is the increasing concentration of open interest around the $100,000 level for the end of July. If the Runes have the impact that many believe they will, perhaps this psychological level could actually be within reach much sooner than many expected. Overall, options paint a similarly mixed picture, with short-term volatility the main expectation.”

As for what could help reignite bull market momentum, Davies noted that “Bitcoin has a strong base for growth, which includes the recent halving, which often tends to lead to prices appreciating over the next year and seeing the Bitcoin reaches new highs.”

Other bullish factors include “the introduction of Runas bringing more functionality to Bitcoin, including DeFi functionality, and the recent launch of spot Bitcoin ETFs in Hong Kong, perhaps with greater value for international investors than those with 100% collateral cuts.” In the USA”.

“After the recent rally, a lot of capital has been invested in good projects that will start launching during the summer, perhaps creating a second DeFi summer,” he said. “Even though this will occur more in the autumn and winter of 2024, projects that improve capital efficiency by replacing outdated metrics such as total value locked (TVL) were the subject of DAS London and Token 2049 in Dubai. There are many positive things to see in Bitcoin and the crypto ecosystem created in the last bull run.”

Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes. This is not a request to carry out any exchange of goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no liability for loss and/or damage arising from the use of this publication.

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We are the editorial team of SatoshiTimes, where seriousness meets clarity in cryptocurrency analysis. With a robust team of finance and blockchain technology experts, we are dedicated to meticulously exploring complex crypto markets with detailed assessments and an unbiased approach. Our mission is to democratize access to knowledge of emerging financial technologies, ensuring they are understandable and accessible to all. In every article on SatoshiTimes, we strive to provide content that not only educates, but also empowers our readers, facilitating their integration into the financial digital age.

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Bitcoin

What to watch for in the markets

Published

9 months ago

21 July, 2024

SatoshiTimes Staff

Photo: Andrew Harnik (Getty Images)

After witnessing one of the largest global IT outages on record, affecting the travel, finance and healthcare sectors worldwideThis week is set to see more political drama, events, and earnings reports from tech giants.

Donald Trump’s ‘Lovefest’ Sets Jamie Dimon Up for Consideration for Treasury Secretary Job

Let’s take a look at what awaits us:

Major companies will release their earnings reports

Major tech companies and others will release their earnings reports this week, paving the way for what the second half of 2024 will look like.

Monday

Verizon will report earnings before the start of operations.

Tuesday

Coca-Cola, Comcast and UPS are all set to report earnings before the market opens.
Tesla will report earnings in the morning, while General Motors will report earnings in the evening.
Alphabet and Visa will report results after the market closes.

Wednesday

AT&T will release its report before the market opens.
Ford and Chipotle will report earnings after the market closes.

Thursday

Earnings reports from AstraZeneca, American Airlines and Southwest Airlines will be released before the market opens.

Trump to speak at Bitcoin conference

Presumptive Republican presidential nominee Donald Trump will speak at the next Bitcoin Conference in Nashville, Tennesseewhich is scheduled for July 25-27. While this is the first time a presidential candidate will attend the conference, it has sparked a debate over whether the crypto-friendly Trump will receive support from the crypto community in the upcoming election.

In addition to Trump, independent presidential candidate Robert F. Kennedy Jr. will also discuss crypto during the conference. Crypto advocates such as ARK Investment’s Cathie Wood, MicroStrategy’s Michael Saylor, and whistleblower Edward Snowden are among some prominent names who will be participating in the conference.

Ether ETFs are on the way

New Ether Spot ETFs are set to begin trading on Tuesday, July 23. Much like the spot Bitcoin ETFs, these ETFs will allow investors to buy the second most popular cryptocurrency like stocks. BlackRock, Ark Invest/21Shares, VanEck, Grayscale, Fidelity, Bitwise, Franklin Templeton, and Invesco/Galaxy Digital are all set to offer Ether ETFs. Crypto asset manager Bitwise predict that trading in the Ether ETF will drive the price of Ether higher, potentially surpassing $5,000.

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Bitcoin

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Published

9 months ago

21 July, 2024

SatoshiTimes Staff

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Bitcoin miners and cryptocurrency companies that have been blocked from going public in the U.S. could ultimately be the biggest winners in the digital asset world under a second Donald Trump presidency. Foreign companies at risk of losing market share could end up being the biggest losers.

That’s the view that’s taking hold among market participants and observers in the wake of the former president’s growing embrace of cryptocurrency as his chances of election grow. survey released Thursday by CBS News showed Trump with the majority — 52 percent — of likely voters in his likely November rematch with President Joe Biden.

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Bitcoin

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Published

9 months ago

21 July, 2024

SatoshiTimes Staff

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Cryptocurrency investor Chris Burniske says Bitcoin (BTC), Ethereum (ETH), Solana (SUN) and the cryptocurrency market in general seem poised for a run.

Former Head of Cryptocurrency at ARK Invest account his 292,200 followers on social media platform X that several catalysts are aligning, suggesting that digital asset markets are on the verge of a bull run.

According to Burniske, a partner at venture capital firm Placeholder, the highly anticipated launch of Ethereum-based exchange-traded funds (ETFs), Republican presidential candidate Donald Trump speaking at an upcoming Bitcoin event, and the current state of the BTC, ETH, and SOL charts all suggest significant optimism for the cryptocurrency markets.

“With ETH ETFs set to go live, Trump speaking at The Bitcoin Conference, and BTC, ETH, and SOL charts looking [they do] (while stocks are weak), it’s hard to imagine a world where we don’t ship next week.”

Reuters recently reported that preliminary approval for ETH ETFs has been granted as the Bitcoin Conference is scheduled to take place from July 25-27.

BTC, ETH, and SOL are trading at $67,333, $3,528, and $174 at the time of writing, respectively.

The venture capitalist too provides an update on his prediction that the total crypto market cap will eventually hit $10 trillion. According to his chart, the path to $10 trillion is currently “23%” complete, as it sits around $2.2 trillion.

Source: Chris BurniskeX

Earlier this month, Burniske he said in an interview with Real Vision CEO Raoul Paul that he has his eye on the Move ecosystem, which was originally built by social media giant Meta and then used to develop layer 1 blockchains Sui (IUE) and Apts (APT).

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Bitcoin

Here’s the next target for BTC before bulls can hold out for $70K

Published

9 months ago

21 July, 2024

SatoshiTimes Staff

Here’s the next target for BTC before bulls can hold out for $70K

Bitcoin’s recovery is going well, and the market is seemingly poised to create a new all-time high in the near term.

Technical analysis

Per NegotiationRage

The daily chart

As the daily chart shows, the price of Bitcoin has been rising since it broke above the 200-day moving average.

The market has also reclaimed the $60K and $65K levels and is moving towards the $68K resistance zone, which could be the last hurdle before creating a new all-time high. With the RSI also indicating that the price has clear bullish momentum, it could be just a matter of time.

Source: TradingView

The 4-hour chart

Looking at the 4-hour chart, it is evident that the price has been rising rapidly since breaking the downtrend line to the upside. The market also broke the $65K resistance level with momentum, turning it into a support.

While almost everything points to a new record high in the coming weeks, there is one worrying sign. The RSI is showing a clear bearish divergence between recent price highs, which could indicate a correction or even a reversal in the near term.

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Cryptocurrency Charts by TradingView.

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