Bitcoin
Other cryptocurrencies also rallied on Friday as investors got ahead of key US inflation data, with crypto traders betting on continued bullishness in digital asset prices.
the price of
Bitcoin
It has risen more than 1% over the past 24 hours to near $30,800, nearing Bitcoin’s recent peak above $31,000, its highest since June last year. The largest digital asset is up about 85% in the first half of 2023, a notable performance after the cryptocurrency closed out sharply weaker last year following the shock bankruptcy of exchange FTX. rice field.
“Bitcoin’s comparative performance against the broader cryptocurrency market has strengthened, with no signs of a reversal,” said Rachel Lin, CEO of trading platform SynFutures.
The next day contains further gains, or catalysts with a possible reversal.like
Dow Jones Industrial Average
and
S&P500,
Bitcoin is expected to trade on the back of the US Core Personal Consumption Expenditure (PCE) Index, a Federal Reserve-recommended measure of inflation, due to be released at 8:30 a.m. ET.
Expectations that the Fed, which has been aggressively raising interest rates since March 2022 to curb the highest inflation in decades, will soon stop tightening monetary policy are boosting bitcoin. PCE data suggest central banks are likely to take a more accommodative stance on monetary policy or are poised to raise interest rates further if inflation remains high to curb demand for riskier assets There is a possibility that it will support the
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Meanwhile, crypto traders remain bullish, piling up derivatives positions betting that prices will continue to rise.
“Derivatives data show an increase in trading activity,” Lin said. “Option open interest shows 66% call and 34% put, with the most important interest rates being the $35,000 and $32,000 call levels, and if Bitcoin breaks through the $30,000 level. acts as a resistance to
Calls are bets on the price going up, so a bias towards calls over puts betting on prices going down is a sign of bullish sentiment among traders.
Beyond Bitcoin
ether
The second largest cryptocurrency rose 1.5% to $1,885. Smaller cryptocurrencies, or altcoins, performed even better.
Cardano
5% increase,
polygon
Jump over 6%. Memecoins also exhibited more of the same.
dogecoin
and
Shiba Inu
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4% up each.
Email Jack Denton at jack.denton@barrons.com.
