The price of bitcoin (BTC) currently seems unpredictable. Yet bitcoin options traders seem to be quite confident that the price will continue to rise towards the autumn.
More positive sentiment among bitcoin traders
On May 1, U.S. Vice Chairman Jerome Powell Federal Reserve the statement that there would be no further cuts and interest rate increases. Since the ruling, Bitcoin has started to rise nicely. The disappointing unemployment figures were then announced on Friday. These figures resulted in an even faster rise for the largest digital currency. Bitcoin rose by no less than 12% to a price of 63,470 dollars.
There is also a growing demand for so-called bitcoin call options on the crypto exchanges. This gives someone an option to buy bitcoin at a pre-agreed price or on an agreed date. These options show that people expect a higher price for bitcoin. For example, traders buy options for bitcoin prices at $75,000 and $100,000, according to QCP Capital in a response to The Block. Currently, the options to buy are more expensive than the options to sell, indicating that more people are choosing an option to buy bitcoin because they expect a rising price.
Rising expectations among analysts
Analysts are also positive about bitcoin. Both fundamental and technical analyzes indicate that there is a greater chance of a rising price. According to 10X Research, the ongoing presidential election and the United States’ spending deficit will help support bitcoin.
Swissblock Insights expects that the dollar rate will not be further stimulated. And a weaker dollar is usually good news for venture investments like cryptocurrencies. Since the Federal Reserve met last Wednesday, the dollar rate already fell by 1.2%. With the current policy, the dollar will probably fall further, unless there are critical voices about Powell’s choice. There could be other members who would prefer to see interest rate increases.
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