Since time immemorial, market uncertainties have always tried to lead the dance of the financial world. A new addition to this collection of uncertainties arises from the too-hot-to-handle world of the cryptocurrency market focusing on a single event: the $4.7 billion Bitcoin option, set to expire on June 30. The question on everyone’s lips – how will that impact BTC‘s price?
Among market aficionados, a widespread belief is that tomorrow’s colossal expiry could potentially solidify the $30,000 price of Bitcoin as long-term support, triggering future bullish momentum. Many attribute Bitcoin’s recent surge above $27,000 to the multiple requests for Bitcoin exchange-traded funds such as those from BlackRock and ARK Invest. This positive sentiment was further fueled by Grayscale’s expectations to morph its Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF.
However, cryptocurrencies, like coins (no pun intended), have two faces. For Bitcoin bears, the market presents an array of potential pitfalls. Macroeconomic headwinds and regulatory hurdles, including mandatory Know Your Customer (KYC) systems implemented by exchanges, are concerns to consider. Speaking of which, on June 28, KuCoin publicized an imminent KYC system upgrade, aimed at boosting compliance with global Anti-Money Laundering regulations.
The impact of the network’s $128 million mining sell-pressure, as noted by Glassnode analytics, is another red signal flashing on the bearish radar. Furthermore, hints of two additional rate hikes this year by the Federal Reserve Chair, Jerome Powell, during the European Central Bank summit in Portugal have made the market atmosphere even tenser.
Some Bitcoin traders, apprehensive about this restrictive scenario globetrotting the economy, have opted to take profits, effectively limiting the price upswing. Meanwhile, optimistic traders are hoping for a higher price level, as $4.7 billion worth of open interest directed for June 30 expiry remained unreachable. Call buy options near $30,500 at 8 am UTC on June 30 worth $630 million may be the only relevant ones available.
With BTC price bears reckoning to balance the scales, the outcome will hinge on whether the Securities and Exchange Commission accepts the Bitcoin ETF proposal. Regardless of the unknown inflow or timing of such an event, if the price stays above $30,000, BTC bulls could witness a short-term profit of $440 million. Just another day in the fast-paced, adrenaline-infused world of cryptocurrency trading!
Source: Cointelegraph
