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Breaking News: Cantor Fitzgerald Projects Major Growth For Hyperliquid (HYPE) In Explosive New Report
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Breaking News: Cantor Fitzgerald Projects Major Growth For Hyperliquid (HYPE) In Explosive New Report

Bitcoin Price Braces For Volatility Ahead Of Chinese Stimulus Speculations, Options Expiry

Ash Tiwari
Ash Tiwari
Last Updated: October 12, 2024 6:00 am
3 mins read
bitcoin

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Bitcoin (BTC) may experience increased volatility in the coming days, driven by speculation surrounding another Chinese fiscal stimulus announcement and the expiration of BTC options worth $1.1 billion.

Chinese Stimulus Measures To Help Bitcoin?

According to the State Council Information Office, China’s Finance Minister, Lan Fo’an, is expected to provide details on 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 (PBoC) cut interest rates on existing mortgages by 0.5% and lowered reserve requirement ratios for banks to boost market liquidity. 

The global crypto market is increasingly paying attention to China’s stimulus plans, as enhanced liquidity could positively impact the prices of digital assets like BTC.

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While the announcement is anticipated, confirmation of another round of fiscal measures, especially if they exceed market expectations, could significantly boost risk-on assets like Bitcoin. 

In addition, if the US Federal Reserve (Fed) decides to cut key interest rates further, it could increase investor appetite for riskier assets, including digital currencies known for their volatility.

Currently, prediction markets are speculating at least another 50 basis points (bps) cut in interest rates by the end of the year. Such a move would increase global liquidity and help BTC avoid a capitulation that could cause its price to crash into the high $40k range.

BTC Options Expiry Could Trigger Price Volatility 

Another factor that could impact Bitcoin’s price volatility is the $1.1 billion worth of 18,000 BTC options set to expire on October 11. At press time, the put-call ratio is 0.91, indicating a slight tilt toward put options.

With Bitcoin hovering around $60,000, the chances of reaching the “max pain” price of $62,000 are growing. For those who are uninitiated, “max pain” refers to the price level where the 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 U.S. presidential election in November have made it difficult to predict BTC’s future price movement.

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Despite the challenges above, some trading firms and crypto analysts are confident about the resiliency of digital assets and the potential for a Q4 2024 crypto rally.

For instance, crypto trading firm QCP Capital noted that Bitcoin’s swift recovery following the Iranian offensive against Israel indicated its strong demand among investors.

Similarly, Bitwise CIO Matt Hougan outlined three major factors that could help the BTC price “melt-up” to a new all-time-high (ATH) of close to $80,000 in Q4 2024. BTC trades at $62,086 at press time, up 2.7% in the last 24 hours.

bitcoin
BTC has recovered losses incurred over the past 2 days on the daily chart | Source: BTCUSDT on TradingView.com
Featured image from Unsplash, chart from Tradingview.com
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Ash Tiwari
Ash Tiwari

Ash Tiwari

Ash is a dedicated crypto researcher and blockchain enthusiast with a passion for diving deep into the evolving world of decentralized technologies. With a background in writing and a natural curiosity for how digital assets are shaping the future, he has immersed himself in various sectors of the cryptocurrency space, including decentralized finance (DeFi), NFTs, and liquidity mining. His journey into crypto started with a desire to fully understand the technology behind it, leading him to explore and engage with these systems firsthand.

Read more

Ash’s approach to DeFi goes beyond surface-level research as he actively participates in decentralized protocols, testing their functionality to gain a deeper understanding of how they operate. From experimenting with staking mechanisms to exploring liquidity mining strategies, he is hands-on in his exploration, which allows him to provide practical, real-world insights that go far beyond theoretical knowledge. This immersive experience has helped him develop a comprehensive grasp of smart contracts, token governance, and the broader implications of decentralized platforms on the future of finance.

In the NFT space, Ash’s interest is driven by the technology’s potential to reshape ownership and creativity in the digital age. He has explored various NFT projects, gaining insights into how these digital assets function within different ecosystems. His focus is on understanding the evolving relationship between creators and communities, as well as the innovative uses of blockchain technology to establish authenticity and provenance in the digital world. Ash’s research in this area often touches on the intersection of culture, technology, and community-driven projects.

A key area of his expertise lies in liquidity mining, where he has engaged with various decentralized platforms to understand how liquidity provision contributes to the functionality and security of DeFi ecosystems. Ash’s hands-on involvement has allowed him to analyze the risks, rewards, and broader implications of liquidity pools, giving him a well-rounded perspective on this integral part of DeFi. His understanding of risk management and protocol design allows him to provide insights into how these systems can be navigated effectively, with an emphasis on both opportunity and caution.

When it comes to communicating these complex topics, Ash’s writing is grounded in clarity and depth. He excels at breaking down intricate blockchain concepts into easily digestible information for a wide audience. Whether explaining the workings of decentralized exchanges or outlining the future potential of blockchain technology, Ash ensures that his content is accessible to both those new to the space and experienced participants looking for deeper insights.

Beyond DeFi and NFTs, Ash explores a wide array of emerging blockchain applications. His research spans areas like cross-chain technologies, decentralized governance, and blockchain’s potential to integrate with traditional finance. He is continuously learning and adapting to the latest developments, ensuring that his insights are both timely and relevant. His interest extends to how these technologies are creating new possibilities for decentralization, transparency, and trust in a variety of industries.

Ash’s commitment to engaging with the crypto space firsthand gives him a unique perspective that goes beyond what can be learned from research alone. His practical involvement allows him to stay ahead of the curve, offering readers and enthusiasts a clear and comprehensive understanding of the rapidly evolving world of blockchain. Whether delving into the technical mechanics of DeFi or exploring the cultural impact of NFTs, Ash’s approach is always rooted in curiosity, research, and a desire to make this technology accessible to all.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

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