“There’s still plenty of fuel left for this bull run,” Sean Dawson, head of research at on-chain options platform Dervie, told Decrypt. Bitcoin is expected to hit “$150,000 before the end of the year,” based on volatility data he added.
Crypto prices climbed in the wake of last week’s rally in technology stocks, a surge that coincided with investor optimism over U.S. rate cuts and a sagging U.S. dollar.
The increased correlation between NASDAQ and Bitcoin “explains the recent price action,” crypto-focused intelligence newsletter Ecoinometrics wrote in a Sunday post on X.
“Bitcoin may be digital gold, but it trades like a risk-on asset. What really matters is whether markets are in a risk-on or risk-off regime,” it wrote.
Markets are now turning their focus to the July Consumer Price Index report, due Tuesday. Economists expect a 10 basis point uptick in the annual inflation rate to 2.8%.
A softer-than-expected print could bolster expectations for a Fed rate cut as early as September.
“We’re seeing the confluence of a number of macro and political factors that could send prices soaring,” Dawson said. “Crypto typically performs very well in low-rate environment conditions.”
Still, some traders are positioning defensively. Dawson noted increased demand for put options, suggesting rising concern over a potential upside surprise in the inflation data.
That could cause a "mini panic,” and could lead to a "sharp downturn,” Dawson added.
decrypt.co
