BTC Nears All-Time High Again: Bull Run Still Has Plenty of Fuel
CoinGecko data indicates that last week’s losses were partially offset by the surge over the weekend. Bitcoin is presently extremely near its all-time high of $122,838, which it attained on July 14, after rising 4.5% since Saturday’s start. Alongside rises in spot and perpetual trading volumes, open positions rose by 7,834 BTC, according to statistics from the derivatives site Coinalyze. There are indications that speculative long positions were the main source of support for this movement.
There’s still plenty of fuel left for this bull run,
Sean Dawson, head of research at on-chain options platform Dervie
What’s Driving Bitcoin Now?
Following last week’s spike in technology stocks, which was accompanied by a decline in the value of the US dollar and investor optimism for U.S. rate cuts, cryptocurrency prices increased. In a Sunday post on X, the crypto-focused intelligence weekly Ecoinometrics stated that the recent price action can be explained by the rising correlation between NASDAQ and Bitcoin.
Bitcoin may be digital gold, but it trades like a risk-on asset. What really matters is whether markets are in a risk-on or risk-off regime,
Ecoinometrics
Is a Fed Rate Cut Coming in September?
The July Consumer Price Index report, which is scheduled for release on Tuesday, is currently the market’s main focus. Economists predict that the annual inflation rate will increase by 10 basis points to 2.8%. Expectations for a Fed rate cut as early as September could be strengthened by a softer-than-expected print.
We’re seeing the confluence of a number of macro and political factors that could send prices soaring. Crypto typically performs very well in low-rate environment conditions.
Dawson
Nonetheless, some traders are taking a defensive stance. Dawson observed a surge in put option demand, indicating growing apprehension of an upside surprise in the inflation figures.
For more up-to-date crypto news, you can follow Crypto Data Space.
