📈Bitcoin hits the $70,000 mark: Trump election odds and expectations of a Federal Reserve interest rate cut affect the contract and options markets! 🚀
Recently, the Bitcoin market has shown significant upward momentum, with the price approaching the key resistance level of $70,000, which may herald an important market test for Bitcoin. Additionally, Bitcoin’s price dynamics are closely tied to Trump’s election odds, demonstrating the sensitivity of the cryptocurrency market to political events.
Moreover, Bitcoin’s open interest (OI) has exceeded the $40 billion mark, hitting a record high, which is a big signal for speculation. Although some people are concerned that this means that the price fluctuations are all due to leveraged futures positions, the good news is that the funding rate remains neutral, indicating that the long positions are relatively balanced and not too crazy.
Let’s look at the macroeconomics. The Federal Reserve’s possible interest rate cuts, increased liquidity, and possible improvements in the U.S. crypto regulatory environment are all great benefits that support Bitcoin’s continued rise. If Bitcoin can break through $70,000, it may be as unstoppable as it was when it broke through $30,000 in October last year!
In the options market, traders are already eyeing call options expiring in November with strike prices above $80,000. That's because there are two big events next month: the U.S. presidential election and the Federal Reserve's interest rate decision. Everyone is betting that the Federal Reserve will cut interest rates, and the possibility is not small.
Data on Deribit also shows that the number of call option contracts expiring at the end of November is extremely large, while the number of put options is much smaller. This shows that the market is generally optimistic about the Bitcoin price in November. However, there are also traders hedging, and open interest in put options is increasing.
In short, the Bitcoin market is really busy right now, and everyone is preparing for the next big event. Let us wait and see if Bitcoin can break through the siege and reach new highs!
Viewpoint: Increase the spot position at low prices, go long on dips in the contract, and look at 80,000 for options in November.
