Speculations are rife regarding Bitcoin breaking the $74K mark

Speculations are rife regarding Bitcoin breaking the $74K mark

With Bitcoin prices hovering around $74,000 this month and with increased demand, rumors are circulating that it will shatter its own record in the upcoming days.

According to certain analysts with QC Capital, there is a strong demand for bitcoin call option purchases in the current month, pointing towards a further increase in its prices, propelling it beyond the $74,000 mark. Some are predicting it will reach the $75,000 figure. 

A very short while back, the maximum trade volume on Derbit was inclined toward calls, with strike pricing amounting to $80,000 towards the end of the month. The total figure reached 1,723 contracts, with a supposed value going past $123 million. 

In the opinion of Neil Roarty, an analyst, the enormous jump is due to added inflows about spot bitcoin ETFs. As per his understanding, the increased inflow signified a rise in demand coming from the institutional sector. What is to be seen is whether this trend will be maintained, with the institutional investors remaining just as aggressive. 

For institutional investors, it will all depend on the rate of interest. Its lowering will help bring about a further surge, with various other investment options taking a back seat for the time being. There seems to be a favorable wind blowing towards Bitcoin presently. 

There is a certain entity linked with the US that is mulling over the lessening of the interest rate. The Bank of Canada dropped its current rate by 25 points, arriving at 4.7%. The central bank of Ottawa supports this idea, particularly for stemming inflation. 

Presently, bitcoin is traded at roughly $70.750, signifying a more than 1.3% rise.

Published at Thu, 06 Jun 2024 21:00:00 +0200

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