• Bitcoin’s price has followed XRP’s footsteps and rallied close to $32,000.
• The July 14 Bitcoin weekly options expiry could lead to a breach below the crucial $30,000 support level.
• Recent macroeconomic data and remarks from the SEC have decreased the odds of a spot ETF approval.
Bitcoin Price Rallies to $31.8K
Bitcoin’s price is following in XRP’s footsteps by rallying close to $32,000. Despite the initial bullish surge triggered by the spot Bitcoin exchange-traded fund (ETF) requests, recent macroeconomic data has not been favorable for risk-on assets. This week’s $720 million options expiry could be a significant turning point for market sentiment, potentially leading to a breach below the crucial $30,000 support level.
Lower U.S Inflation Detrimental to Bitcoin
In June, the Consumer Price Index in the United States registered at 3.0%, its lowest level since March 2021 due to a 16.7% decline in the energy index. While this slows down inflation it remains above Federal Reserve’s target of 2%. Higher interest rates incentivize investors to pivot into fixed-income investments which is detrimental to Bitcoin in the short term. On July 12th, The U.S Dollar Index reached its lowest level in 14 months due to waning confidence in Fed’s ability to prevent recession and consumers utilizing cash reserves for travel and summertime activities..
Odds of Spot ETF Approval Decrease
The approval of spot ETF could provide bulls with an opportunity for further gains but recent statements by Gary Gensler, chair of the U.S Securities and Exchange Commission (SEC), have decreased these odds significantly as he advised caution when trading cryptocurrency products which may lack investor protection or manipulation monitoring tools such as liquidity tests or position limits on derivatives markets..
Options Expiry Could Lead To Bearish Momentum
If bears manage profit up until July 14th through this week’s option expiry then they can make up too 120 million dollars through breaching crucial 30k support level .It is important that bulls sustain trading price above 31k on July14th as it will determine whether bears will succeed or not .
Although there is still potential for spot ETF approval , recent macroeconomic data and remarks from SEC have decreased chances significantly .It is essential that BTC holds above 30k on July 14th otherwise bearish momentum might prevail .