Top Reasons Why Bitcoin Price is Up Today

Bitcoin price reversed trends after a sudden downfall on Friday as investors appear to be regaining confidence in the crypto. After the favorable US economic data including CPI inflation and retail sales report, traders have turned bullish on Bitcoin. Besides, some investors believe this could be the last time to buy the dip.

However, Bitcoin options expiry became a major headwind in the rally. Meanwhile, the crypto market fear & greed sentiment index has dropped from 29 to 27 (fear).

Bitcoin Price Rises As Macro Sentiment Improved

The recent macro events such as an increase in retail sales and cooling PPI and CPI inflation in the US have turned investors’ sentiment bullish. Traders are optimistic about the start of rate cuts soon by the U.S. FOMC Committee. The Wallet Street expects Fed rate cuts to start in September.

CME FedWatch tool data indicates a 71.5% probability of a 25 bps rate cut in September after the recent macroeconomic data. The data still shows odds of 100 bps rate cuts by the Fed this year.

US stock market futures were mostly flat on Friday as investors believe a strong recovery this week. Data showing the resilience of the US economy, including inflation, jobless claims, and retail sales, has helped US stocks post their best week of the year. In contrast, BTC price today faced selling pressure.

John Stoltzfus, chief investment strategist at Oppenheimer, says, “Perhaps the Fed Chair is talking the talk and walking the walk,” as he expects three interest rate cuts from the central bank by the end of the year.

However, soon after, the crypto has regained its momentum, as a flurry of investors deems it as a hedge against inflation. In a recent X post, Elon Musk revealed key reasons behind the US inflation and suggested a potential solution to that.

Echoing the sentiment, Galaxy CEO and Coinbase executives said that Bitcoin could act as a potential solution. In addition, it is one of the favorable assets during economic turmoil.

What Has Caused The Recent Drop in BTC Prices

Bitcoin price fell suddenly in the early US hours today, primarily in response to the volatility surrounding the crypto market expiry. As reported by CoinGape, 24,000 Bitcoin options of notional value $1.4 billion expired today, with a put call ratio of 0.83. The max pain point is $59,500, which is higher than the current price of $57,853. This means traders positions were liquidated.

Moreover, Coinglass data indicates total BTC futures open interest dropped 1% in an hour on CME and Binance. Traders made their last Bitcoin price sell decision before the CME market closes today.

The liquidation data indicates that $210 million in crypto were liquidated in the last 24 hours, with $25 million in the last hour. BTC recorded more than $5 million in liquidation in an hour and $75 million in the last 24 hours.

The price is facing resistance at the descending trendline in the 1-hour timeframe. A slight push could turn the ball in the favor of bulls. However, the risks of falling are higher. BTC price analysis by CoinGape indicates the price can fall to $54,000.

As per 10x Research report, Bitcoin could retreat into the trading zone between $50,000 and $60,000. On the upside, Bitcoin price today is facing strong resistance in the range between $60,000-$61,000. Moreover, other fears surrounding Bitcoin selloff by the US government and hedge funds returning to the Yen carry trades are also impacting price action today.

However, BTC price rebounded from the $57K level but still trading under selling pressure in the past 24 hours, with the price currently trading at $59,288. The 24-hour low and high are $56,161 and $59,423, respectively. Furthermore, the trading volume has increased by 15% in the last 24 hours.