“The decline in the inversion of the U.S. government bond curve creates conditions for strengthening positions in risk assets, including bitcoin. Standard Chartered came to this conclusion, writes The Block. The impetus for the growth of optimism was the reduction of the Fed’s key rate by 50 bps. according to the results of the meeting on September 18. Positive expectations are confirmed by the increase in open interest in call options with maturity on December 27 and an exercise price of $100,000. According to analysts, the jump in the metric […]”, — write: businessua.com.ua
The decline in the inversion of the U.S. government bond curve creates conditions for strengthening positions in risk assets, including bitcoin. Such a conclusion was reached in Standard Chartered, writes The Block.
The impetus for growing optimism was the reduction of the key rate Fed for 50 b. according to the results of the meeting on September 18.
Positive expectations are confirmed by the increase in open interest in call options with a maturity of December 27 and an exercise price of $100,000.
According to analysts, the jump in the metric is so significant that it cannot be explained only by price increases on the spot market.
An additional factor in favor of the bulls is the speech of the candidate for the presidency of the United States, Kamala Harris. The Democratic representative promised to “encourage innovative technologies like AI and digital assets” if elected.
“Such comments suggest that any outcome on November 5 will ultimately have a positive impact on Bitcoin,” experts commented.
Nansen sees the current improvement in the cryptocurrency market as an opportunity to reduce long positions. In their opinion, the softening of the Fed’s policy “met the expectations of investors.”
“Maintenance of digital assets [у портфелі] makes sense as the Fed has given more power to this bull run. But in the price […] a lot has already been reflected,” the experts explained.
Earlier, QCP Capital noted the chances of cryptocurrency growth due to incentives in China.
We will remind, according to the scenario of the analyst PlanB, in October, bitcoin will rise in price to $70,000, and by the end of the year the rate can reach $150,000.
The head of Factor LLC, Peter Brandt, predicted the growth of digital gold in price five times compared to its physical counterpart.
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