As Bitcoin prices hit the $35000 mark, the cryptocurrency market is once again active. In recent days, we have received some important macroeconomic data from the United States and interest rate decisions from the Federal Reserve
As Bitcoin prices hit the $35000 mark, the cryptocurrency market is once again active. In recent days, we have received some important macroeconomic data from the United States and interest rate decisions from the Federal Reserve.
Bringing two positive news, it has boosted the entire encryption community. The first good news is that the largest cryptocurrency exchange in the United States now offers futures contracts to American traders, providing them with more options. In addition to purchasing Bitcoin, they can also participate in short selling Bitcoin.
Another positive development was the announcement by Mr. Powell of the Federal Reserve at 2am that the United States would further stop raising interest rates. This marks the third consecutive time since July that the United States has not raised interest rates. This indicates that the uncertainty of interest rate hikes in the United States may be receding, and there may be a possibility of interest rate cuts in the future.
So, what trading opportunities may interest rate cuts bring? Let's take a look at the long short closing data of the entire Bitcoin market. I have observed almost universal triggering of short stop losses. Therefore, the upward potential of Bitcoin may be limited. At present, bullish sentiment is generally high, as can be seen from the fund rate.
Currently, there are a large number of traders trading long, especially on Ethereum. If you are considering short selling, I suggest you take a closer look at Ethereum.
I believe that a truly violent bull market will require a major baptism to emerge. Last night's wave made me say it was a small bull market before the bull market, and there may be a deeper retest. Will this wave of pullback continue to rise after 32000?
The report shows that approximately 74% of people believe that we are in a bull market. But is this really a bull market, or is it just a part of a bull market? What should we focus on? In the field of cryptocurrencies, MicroStrategy's Bitcoin investment return scale is constantly expanding, and data shows that funds seem to be flowing back to the United States. The position of futures contracts is steadily increasing, and the approval of spot ETFs has attracted high attention from the market. Some experts believe that Bitcoin is an asset with great potential. Future growth.
It not only caters to institutional investors, but also provides futures trading services for individual users in the United States, which may have a significant impact on the market. In addition, as we transition to a true bull market, the legal framework in the United States has developed to provide a wider range of trading products in the Bitcoin market, including leveraged futures contracts, which may attract more funds to enter the Bitcoin market. Bitcoin market.
As you can see, Bitcoin has recently broken through the long awaited price level of $35000. The recent appearance of a gold fork in Bitcoin indicates an expected upward trend. It seems that the price of Bitcoin meets market expectations.
According to MicroStrategy's financial report, as of October 31, 2023, the company held a total of 158400 Bitcoins, with a cost base of $4.69 billion and an average holding cost of $29586 per Bitcoin. If your Bitcoin holdings exceed $30000 at a lower cost, then you are basically on the same starting line as MicroStrategy, or some may say, even in a more advantageous position.
Given the current Bitcoin price, MicroStrategy firmly holds Bitcoin, bringing them over $900 million in unrealized profits. Even during periods of fluctuations in Bitcoin prices, such as the FTX crash and the US banking crisis, they still firmly believe in Bitcoin. Now, their persistence has paid off handsomely.
After the price of Bitcoin reached $35000, the market entered a relatively stable period, with Bitcoin prices fluctuating within a narrow range. Although there is uncertainty about the future direction, there is still the potential to further increase to $40000
The continuous increase in futures contract holdings indicates a growing market enthusiasm for risks and potential profits. In addition, the financing interest rate is mainly positive, indicating that people are optimistic about the price potential.
However, it is worth noting that the significant liquidation of long or short positions has not yet been achieved, and market volatility has not sharply increased. There is still room for significant liquidation.
On the other hand, data suggests that funds may return to the United States. Previously, many media reports believed that 2023 would be a year for funds to flow from the United States to Asia, but this situation is changing. The main financial institutions are concentrated in the United States, with leading fund sizes. The influx of American investors is more likely to trigger a market rebound.
The role of Bitcoin as a security asset is gradually being established, partly due to various conflict events such as the conflict with Hamas. Considering that the yield of US treasury bond bonds has been declining during this period, while Bitcoin has risen by about 23% at the same time, this can be seen as a sign that Bitcoin has gradually turned to monetization.
There is currently widespread optimism in the Bitcoin futures market. The gap between Bitcoin futures prices and spot prices is widening, and futures prices are constantly rising. This indicates a premium in the futures market, demonstrating active trading and dominant position This bullish sentiment is not limited to Bitcoin; Similar trends have also emerged in other cryptocurrencies such as Ethereum. The cryptocurrency market is revitalizing, and Bitcoin spot ETFs are about to be approved. The rumors surrounding Grayscale's conversion of GBTC to GBTC have also attracted widespread attention. Previously, the SEC faced lawsuits against GBTC, which led to the court mandating a review of all matters related to the conversion of GBTC to spot ETFs. If GBTC is successfully converted into spot ETFs, the scale of Bitcoin will further expand. Trust funds can be traded in the market and may trigger a significant price drop.
However, the situation in Ethereum is also changing. The research report shows that the premium level of Ethereum futures has significantly increased, approaching the level of Bitcoin futures. This may be attributed to the market's expectations for spot ETFs compared to special currency. In this situation, capital also began to flow into Ethereum, which is an interesting development.
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