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Bitcoin (BTC) may see increased volatility in the coming days, driven by speculation surrounding another Chinese fiscal stimulus announcement and the expiration of $1.1 billion worth of Bitcoin options.
Chinese stimulus measures to help Bitcoin?
According to the State Council Information Office, the Chinese Minister of Finance, Lan Fu’an, is expected To provide details about upcoming fiscal stimulus measures during a press conference on Saturday. These measures aim to stimulate economic activity in the country.
On September 24, the People’s Bank of China cut interest rates on outstanding real estate loans by 0.5% and lowered reserve requirement ratios for banks to enhance market liquidity.
The global cryptocurrency market is paying increasing attention to China’s stimulus plans, as improved liquidity could positively impact the prices of digital assets such as Bitcoin.
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While the announcement was expected, confirmation of another round of fiscal measures, especially if they exceed market expectations, could significantly boost risk assets like Bitcoin.
In addition, if the US Federal Reserve (Fed) Decide Lowering key interest rates further could increase investors’ appetite for riskier assets, including cryptocurrencies known for their volatility.
Currently, prediction markets are speculating about interest rates being cut by at least another 50 basis points by the end of the year. Such a move would increase global liquidity and help Bitcoin Avoids A capitulation could cause its price to collapse into the high $40,000 range.
The expiration of BTC options may lead to price fluctuations
Another factor that could affect Bitcoin price fluctuations is the $1.1 billion worth of 18,000 Bitcoin options. hiring Expires October 11. At press time, the put ratio is 0.91, indicating a slight bias toward put options.
With Bitcoin hovering around $60,000, the chances of reaching the “maximum pain” price of $62,000 are increasing. For those uninitiated, “maximum pain” refers to the price level at which most options traders are likely to incur losses.
While Bitcoin has recently benefited from global interest rate cuts, geopolitical tensions in the Middle East and uncertainty surrounding the US presidential election in November have made it difficult to predict Bitcoin’s future price movement.
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Despite the above challenges, some trading firms and cryptocurrency analysts are confident in the resilience of digital assets and the potential for cryptocurrencies to rally in the last quarter of 2024.
For example, cryptocurrency trading company QCP Capital male Bitcoin’s rapid recovery in the wake of the Iranian attack against Israel indicates strong demand among investors.
Likewise, Matt Hogan, Head of IT at Bitwise shown Three key factors could help BTC price “melt” to a new all-time high (ATH) near $80,000 in Q4 2024. BTC is trading at $62,086 at press time, up 2.7% in the past 24 hours .
Featured image from Unsplash, chart from Tradingview.com
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