Traders Bullish on Bitcoin: Charts Signal New Rally Before 2024
Traders are placing their bets on Bitcoin reaching a new record before 2024, according to data analyzed by Kaiko. Analyst Adam Morgan McCarthy predicts a surge in Bitcoin’s price after the election, regardless of the outcome. The data shows that traders are optimistic about the cryptocurrency market, with many placing bullish bets on Bitcoin options trades.
McCarthy notes that the volume of Bitcoin options trades has increased leading up to the election, with many traders betting on the asset reaching $100,000 by December 27. The expiration of Bitcoin options trades on November 8 has seen over $3 billion in mostly bullish bets, with trades clustered in the $65,000 to $80,000 range.
The upcoming US election and the Federal Reserve’s expected interest rate cut are seen as bullish factors for Bitcoin, as low interest rates encourage investors to trade riskier assets like cryptocurrencies. Block trades, which are bulk orders from large traders, are also indicating bullish sentiment around Bitcoin’s price leading up to the election.
Beyond the crypto market, traders are also anticipating the outcome of the election in other markets. The increase in 10-year Treasuries yield suggests that the market expects more inflation on the back of a potential Trump win. The stock market performance of the Trump Media and Technology Group this year also indicates that markets are pricing in a Republican victory.
Overall, traders’ bullishness suggests that either candidate winning the election will be a net benefit for crypto in the long run. The data analyzed by Kaiko paints a picture of optimism and potential for a new rally in Bitcoin’s price.
