Bitcoin Surge: What’s Behind the Push Towards $70,000?
Bitcoin is on a tear, eyeing the $70,000 mark, and investors are eager to understand what is driving this latest surge. The expiration of over $3.9 billion worth of Bitcoin futures options is a significant factor in this recent price movement. These options expired early morning on Deribit, setting BTC’s “max pain point” at $63,000, according to a report by News.Az citing Cryptopolitan.
The max pain point is the price at which most options contracts expire worthless, creating downward pressure on the price of Bitcoin. While it doesn’t guarantee that Bitcoin will hit $63,000, it does indicate a potential level of support in the market.
Traders are bracing for volatility around options expiry, as they try to navigate potential price swings and avoid heavy losses. However, the max pain point is just one of many factors influencing the market at any given time.
Another key event driving Bitcoin’s surge is Donald Trump’s upcoming speech at the Bitcoin 2024 conference in Nashville. Speculation is rife about what he may announce, with expectations of a potential Bitcoin Reserve Policy if he wins the next election. The prospect of the U.S. becoming a major crypto buyer has excited many in the crypto community.
In addition to Trump’s speech, traders are eagerly awaiting new inflation data from the country. Recent core PCE price index figures for June showed a higher-than-expected increase, leading traders to believe that the Federal Reserve may keep rates unchanged in July but could start cutting them in September.
Crypto analyst Rekt Capital emphasized the importance of Bitcoin holding strong above $65,000, stating that the recent retest was successful and that Bitcoin has confirmed $65,000 as support. The current trading price of Bitcoin is $67,380, with inflows into Bitcoin ETFs totaling $31.1 million yesterday.
As Bitcoin continues to test the upper limits of its price range, with the Bollinger Bands marking a range between $68,311 and $64,800, investors are closely watching to see if Bitcoin can break above the midline and maintain its upward momentum.
