Bitcoin merchants brace for Fed, choices expiry as BTC value clings to $47Ok
Bitcoin (BTC) hovered at $ 47,000 on Aug. 27 as traders took no chances on the day of the Federal Reserve’s Jackson Hole Summit.
BTC / USD 1-hour candle chart (Bitstamp). Source: TradingView
Cold feet at the end of the month for Bitcoin traders
Data from Cointelegraph Markets Pro and TradingView showed that BTC / USD was hovering in a range of $ 47,000 on Friday.
Bitcoin has seen little move up or down in the past 24 hours as market participants waited for evidence from both the Fed and the month-end options expiration event, this time valued at around $ 2 billion.
“Not a very strong reaction at the moment,” commented the trader and analyst Rekt Capital overnight on the price movement.
“However, a daily close above the high of $ 47,000 would be a positive sign of strength.”
In this case, it didn’t see a higher closing price, with $ 50,000 still unchallenged after Bitcoin lost levels earlier in the week.
Cointelegraph employee Michaël van de Poppe also stuck to his earlier predictions, which included a BTC support zone of around $ 44,000.
“That bitcoin idea is still my primary vision,” he tweeted.
Options expiration usually creates more fear than real selling pressure, with the BTC price actions often shaking off the events themselves. Open interest on Friday was $ 9.19 billion, a three-month high.
BTC options open interest rate chart. Source: Bybt
As Cointelegraph reported, the Fed’s Jackson Hole virtual event is designed to shed light on future economic policy changes related to the coronavirus pandemic.
Related: Analysts say bitcoin price decline and profit taking were “expected” at $ 50,000
Asset purchases can be scaled back, a mechanism known as tapering, which could change sentiment among traditional assets if the S&P 500 trades at all-time highs.
Any clues about inflation policies can also serve to stimulate demand for alternative assets. The US dollar gained in the run-up to the Fed debut, traditionally a point of friction for Bitcoin.
1-day candlestick chart of the US Dollar Currency Index (DXY). Source: TradingView