Bitcoin 107k has recovered well this week. Its price has increased by 1.3 percent in the last 24 hours. Now it is stable above the important level of bitcoin 107k to 108k.
This price increase is happening for a big reason. Monthly options are going to expire on Friday 27 June, and the market is getting ready for it.
Table of Contents
Strong Options Activity Suggests More Upside for Bitcoin 107k
The price of Bitcoin has fallen by 1 point 3 percent in the last 24 hours. It is currently above the important level of 107000. The crypto market is preparing for a big event that is going to take place on Friday. More than 10000 Bitcoin options contracts will expire on that day.
Data from a site called Deribit shows that most people believe that Bitcoin will go up further. Both big investors and small people are showing confidence in the market.
The number of people taking options to buy is much more than those taking options to sell. This means that people think that the price will increase further. If Bitcoin stays above 106000 till Friday, then the price can increase even faster.
Analysts are saying that the level of 106000 is very important. If the price stays above this level, then there are chances of more increase in July. This will also depend on ETF inflows, which are coming at a good speed right now.
On the other hand, people who think that the price will go down, they will benefit only when the price goes below 101000. But right now the price is around bitcoin 107k, so for the bears to win the price will have to fall by 5 percent before Friday
Key Events and Market Signals Driving Bitcoin’s Rally
Some important developments are still supporting the bullish trend of Bitcoin. The total Bitcoin read on centralized exchanges has reduced to just 2.07 million BTC. This means that people are not selling their Bitcoin, which shows the selling pressure is less.
At the same time, the interest of big investors is increasing. Bitcoin ETFs have also recorded a net inflow of more than 120 billion dollars on the third day, as reported by SoSoValue.
Companies are also buying more Bitcoin now. Japan’s company Metaplanet has recently bought 1234 BTC more. Now they have a total of 12345 BTC, whose value is approximately 1.3 billion dollars. After this purchase, Metaplanet has now overtaken Tesla and now it has become the world’s seventh largest Bitcoin holding company.
On the other hand, economic matters are also important. The inflation report is to come on 27 June. It is expected that the Consumer Price Index will increase slightly. If this increase does not happen too much, then people will understand that the Federal Reserve may stop increasing the interest rate. In such a situation, it could be a good time for risky assets like Bitcoin.
Why This Matters
People in the options market are expecting that the price will increase. The stock of Bitcoin on the exchanges is decreasing. Big investors and companies are also taking more Bitcoin. Due to all these reasons, it seems that Bitcoin can go towards a new speed.
See more news about Crypto on DailyCoin:
