2023-10-23 07:56:04
Interest rate-sensitive assets such as gold are showing bullish signals, which may be what will happen with Bitcoin.
The value of Bitcoin surged to $30,797 on Monday. This reached the highest level since July 15.
This month, the price of gold rose 6.7% as tensions between Israel and Hamas flared. Along with the expectation that the FED will relax monetary policy. This is a sign that inflation is approaching.
Greg Magadini, Amberdata’s Director of Derivatives, said in an email:
“Price is the biggest driver at the global level right now. But surprisingly, price-sensitive assets such as gold are trending up. This has a positive effect on Bitcoin.”
Magadini added that war spending tends to cause inflation and that the Fed is hinting that it will raise inflation while the U.S. economy remains strong. This caused a reversal in gold and Bitcoin.
“Bitcoin remains an even more attractive asset class given its complete portability. Can protect against inflation risk and the preservation of wealth that is independent of the government.”
“When I look at the global economy, the ETF news, and the Ripple lawsuit, all of this makes me think that Bitcoin is going to take a big hit.”
Analysts from Blockware Solutions shared similar views. And now there is a greater chance that ETFs will be approved, he said.
“The price action behaves quite interestingly. This is because investors look for safe-haven assets, which Bitcoin can provide during times of economic and geopolitical uncertainty. And investors are also anticipating the approval of Bitcoin ETFs in the future.”
Alex Thorn, Head of Research at Firmwide, Says Bitcoin Options Are Positioned for a Big Rise
options market makers in #bitcoin are increasingly short gamma as BTC spot price moves up.
when you’re short gamma and spot px rises, you need to buy back spot to stay delta neutral.
this should amplify the explosiveness of any short-term upward move in the near term. more ???? pic.twitter.com/J0satUAilk
— Alex Thorn (@intangiblecoins) October 23, 2023
He said that market makers are forcing buying high and selling low. They do so to make the market more stable. But it inadvertently increases price volatility.
Source: Coindesk
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