US CPI and Crypto Policies- ETF Demand Fuels Bitcoin Rally
US CPI and Crypto Policies– According to Markus Thielen, head of 10x Research, many crypto investors could be underexposed to Bitcoin, especially as option traders show increased bullishness. Speaking to Cointelegraph, Thielen noted, “We remain constructive, especially as many traders appear underpositioned following last month’s option expiry, which led to significant exposure roll-off.”
Bullish Signals Point to Potential Upside
Thielen highlighted that traders are now predominantly buying call options, suggesting they expect further upside. He explained, “Traders are now predominantly buying calls, signaling they may be underexposed to further upside.”
Bitcoin recently hit a new all-time high at $112,000. Thielen shared that 10x Research’s Bitcoin trend model turned bullish on June 29, indicating the momentum could last through September. He added, “Our trading signals suggest that this short-term breakout carries a 60% probability of further upside over the next two months, with historical analogs pointing to gains of around +20%.”
A 20% rise from the current $111,000 price would push Bitcoin near $133,000, signaling a possible shift to a higher trading range.
Several factors might drive Bitcoin’s price higher. Thielen pointed to the US Consumer Price Index release on July 15, expected to be “benign,” and a “bullish policy backdrop” during the upcoming US crypto week.
While Q3 is typically Bitcoin’s weakest quarter, Thielen believes this period could be different. He warned, “Traders on the sidelines risk missing the move that could define this quarter.” This breakout is fueled by “relentless ETF demand” and policy catalysts, supported by $215.7 million in inflows to US-based spot Bitcoin ETFs on Wednesday.
Broader Market Sentiment
Other analysts echo this optimistic tone. Crypto trader Jelle remarked on social media, “Bitcoin is taking off,” hoping for a strong close in price discovery to challenge bearish views. Analyst Rekt Capital stated, “The Bitcoin downtrend is over.”
Conversely, Matthew Hyland cautioned that “Max pain is coming” for sidelined investors, reminding of missed buying opportunities similar to 2020’s market behavior.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
