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According to Cointelegraph, Bitcoin (BTC) traders are closely monitoring the upcoming $20 billion monthly options expiry scheduled for June 27. Despite a 1.72% decline in Bitcoin's value over the past month, traders utilizing options to hedge against potential losses have been preparing for a more significant downturn. The recent price recovery presents an opportunity for bullish investors to establish support at $105,000, a critical level that could drive Bitcoin toward a new all-time high in the coming weeks.
Currently, the open interest for call options stands at $11.2 billion, compared to $8.8 billion for put options, with $7.1 billion of those puts having strike prices at $101,000 or lower. This shift indicates a notable advantage for bullish positions. Some analysts attribute Bitcoin's resilience to a more dovish stance from U.S. Federal Reserve Chair Jerome Powell. During his semiannual testimony before the House Committee on Financial Services, Powell suggested multiple paths for interest rates, including potential cuts if inflation remains low. Other Federal Reserve officials have echoed this sentiment, anticipating rate cuts as early as the July policy meeting, supported by data indicating controlled inflationary pressures. Meanwhile, the S&P 500 index has reached its highest level in over four months, signaling potential shifts in investor behavior.
Bitcoin bulls interpret these stock market gains as an indication that investors currently holding short-term government bonds might soon transition to riskier assets in pursuit of higher returns. This perspective is bolstered by projections of a modest 5% revenue growth for the S&P 500 in 2025. Even if central banks refrain from expanding the monetary base shortly, declining yields on fixed-income instruments could still propel Bitcoin's upward momentum. As the options expiry approaches, the most effective bearish scenario would require increased uncertainty, possibly stemming from a drop in hashrate or geopolitical instability, such as rising tensions in the Middle East.
For Bitcoin bulls, maintaining a price above $106,000 could strengthen their position, potentially setting the stage for a rally in July, especially if inflows into spot Bitcoin exchange-traded funds (ETFs) continue. Conversely, bears need to push Bitcoin below $101,500 by June 27 to minimize losses, representing a 5% decline from the current $107,300. The outcome of these dynamics will be closely watched by market participants as they navigate the evolving landscape of Bitcoin trading. This article is for informational purposes only and does not constitute legal or investment advice. The views expressed are those of the author and do not necessarily reflect the opinions of Cointelegraph.
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