The reduction in the inversion of the US Treasury yield curve is creating conditions for strengthening positions in risk assets, including bitcoin. This conclusion was reached by Standard Chartered, reports The Block.
The optimism was spurred by the Federal Reserve’s decision to cut the key rate by 50 basis points following the meeting on September 18.
Positive expectations are further supported by the increase in open interest in call options expiring on December 27 with a strike price of $100,000.
According to analysts, the jump in this metric is so significant that it cannot be explained solely by rising spot market prices.
An additional factor favoring the bulls is the speech by US presidential candidate Kamala Harris. The Democrat promised to “encourage innovative technologies like AI and digital assets” if elected.
“Such comments suggest that any result on November 5 will ultimately have a positive impact on bitcoin,” commented the experts.
Nansen views the current improvement in the cryptocurrency market as an opportunity to trim long positions. In their opinion, the Fed’s policy easing “met investors’ expectations.”
“Holding digital assets [in the portfolio] makes sense, as the Fed has given more strength to this bull run. But much is already priced in,” explained the experts.
Earlier, QCP Capital noted the potential for cryptocurrency growth due to stimuli in China.
According to analyst PlanB’s scenario, bitcoin is expected to rise to $70,000 in October, with the potential to reach $150,000 by the end of the year.
Peter Brandt, head of Factor LLC, predicted a fivefold increase in the price of digital gold relative to its physical counterpart.