The price of Bitcoin reached the threshold of $31,000 today, its highest level since July 15 (July 24). In this situation, some analysts believe that the growth in the value of ierest rate-sensitive assets, such as gold, can be a positive sign of the coinuation of the upward trend of this digital currency in the short term.
According to CoinDesk, while gold recorded a 6.7% growth in the last 30 days, the price of Bitcoin increased by more than 14.6%. Of course, the onset of tensions in the Middle East, along with coinued speculation about the end of the Fed's accommodative policy, suggesting that a period of inflation is ahead, caused gold to start rallying a week ahead of Bitcoin.
Greg Magdini, Director of Derivatives at Amberdata, said:
Ierest rates are currely the biggest macroeconomic driver; But surprisingly, rate-sensitive assets such as gold saw an uptrend, which is good news for Bitcoin.
He added that war spending would traditionally drive inflation, and that the Federal Reserve would simultaneously signal a pause in ierest rate hikes while the U.S. economy remains solid. Given the market's optimism about spot ETFs being approved, the curre trend is likely to lead to higher gold and bitcoin prices. Magdini noted:
Bitcoin remains a more attractive asset than gold due to its ease of transferability, its anonymity from governme and its immunity to inflation. Taking io accou the optimism regarding the launch of spot ETFs and the Ripple lawsuit, in my opinion, the trend of developmes will be very bullish for Bitcoin.
Blockware Solutions analysts also believe that the curre price growth is the result of the possible approval of a Bitcoin spot ETF on the spot market. They noted:
As investors look for the lifeboat that Bitcoin provides amid economic and geopolitical instability, and speculation about the uncertain future of Bitcoin confirms spot ETFs, price action will be decidedly bullish.
According to Alex Thorn, head of research at Formwide, the direction of option market makers indicates the possibility of a sudden move towards higher prices. Thorne explains that market makers maiain short gamma positions that force them to buy high and sell low as the market moves. Traders do this to bring their trading positions back io neutral, which will inadvertely increase price volatility. Thorne added:
As the spot price of Bitcoin rises, Bitcoin option market makers are increasingly moving io short gamma positions. When gamma is short and the spot price rises, you must buy back io the spot market to keep the delta neutral. The result of these actions will be the short-term explosive growth of Bitcoin in the near future.
