The price of Bitcoin (BTC) is rising and taking cues from traditional assets like gold. The leading cryptocurrency reached its highest level since July 15, reaching $30,797. This upward movement is attributed to the bullish momentum seen in interest rate-sensitive assets such as gold. Gold saw a bid a week before Bitcoin as tensions between Israel and Hamas and speculation about the end of the Fed tightening cycle signaled potential inflation.
Greg Magdini, director of derivatives at Amberdata, believes that the bullish momentum in assets like gold is positive for BTC. He mentioned that war spending is traditionally inflationary, and the Fed is hinting at a pause in rate hikes despite a strong U.S. economy, which favors the upside in gold and BTC.
Magdini also highlighted BTC’s appeal as an asset with perfect portability, inflation hedge, and government-agnostic wealth preservation. The potential approval of a BTC exchange-traded fund (ETF) was also mentioned as a factor contributing to the rally. Analysts at Blockware Solutions noted that investors seek the safety provided by the Bitcoin network in times of economic and geopolitical uncertainty.
They also speculate on the future of BTC pending the approval of a spot ETF. The options market makers’ positioning indicates the potential for an explosive upward move in BTC’s price, as they are holding net short gamma exposure, which forces them to buy high and sell low to adjust their exposure.
Source: CoinDesk
