The $4.7 billion Bitcoin (BTC) monthly options expiry on June 30 might play a decisive role in determining whether the $30,000 price will consolidate as long-term support and open room for further bullish momentum.
Why is Bitcoin breaking yearly highs?
Many analysts consider Bitcoin’s recent breakout above $27,000 to be a bet on the multiple spot Bitcoin exchange-traded fund (ETF) applications, including those of BlackRock and ARK Invest.
The news also fueled expectations for Grayscale to be able to convert its Grayscale Bitcoin Trust to a Bitcoin ETF.
$31,000 caps Bitcoin price gains for now
On the other hand, Bitcoin bears will try to take advantage of macroeconomic and regulatory headwinds, including exchanges implementing mandatory Know Your Customer (KYC) procedures.
On June 28, KuCoin announced an upcoming KYC system upgrade in a move to increase compliance with global Anti-Money Laundering regulations.
Moreover, there’s increasing concern over the impact of miners’ sell pressure, with the network hash rate reaching 400 exahashes per second. Analytics firm Glassnode noted that miners sent an all-time high percentage of their BTC revenue to exchanges over the past week, totaling $128 million. Curiously, the movement mimics spikes seen during the 2021 bull run as miners took profits.
Additionally, during the European Central Bank Forum on Central Banking in Portugal, Federal Reserve Chair Jerome Powell warned that most policymakers expect two more rate hikes this year. According to the CME’s FedWatch Tool, investors are pricing in 82% odds of a 25-basis-point interest rate increase on July 26.
Bitcoin price last flirted with the $31,000 level on June 27, but the resistance proved stronger than anticipated. The subsequent correction to $30,000 supports the thesis of sideways trading in the short term as investors evaluate the impacts of additional interest rate increases by the Fed.
Such a restrictive scenario for the global economy might explain why some Bitcoin traders decided to take profits, which limited the price upside.
$4.7 billion out of reach — bulls were too optimistic
The open interest for the June 30 options expiry is $4.7 billion, but the actual figure will be lower since bulls were expecting price levels of $32,000 or higher. These traders got excessively optimistic after Bitcoin’s price rallied 25.5% between June 15 and June 23, testing the $31,000…
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