Bitcoin approached the $70,000 mark on Monday, but Bitfinex analysts warned of a potential price dip ahead of a $2.2 billion options expiry on August 2. They anticipate downward pressure on the price, which could lead to a stall or pullback from the $68,000-$69,000 range. Despite the risk, leveraged long positions are currently more influential than spot market activities.
While the market is in an upward trend overall, short-term price declines or a period of consolidation are likely. Bitfinex advised caution, particularly with leveraged directional trades, due to the options market positioning.
On Monday morning, Bitcoin briefly hit $70,000 before dropping below $67,000 later in the day. The broader macroeconomic environment was described as “cautiously optimistic” by Bitfinex analysts. They noted that the housing market’s impact on growth is a concern, with high median house prices affecting existing home sales.
July has historically been a positive month for Bitcoin, with the cryptocurrency gaining over 15% in the last 30 days. Year-to-date inflows have exceeded $19 billion, setting a new record. Recent data from CoinShares revealed that Bitcoin products received approximately $520 million in capital between July 22 and July 26, pushing total inflows for the year past $3.6 billion.
Despite the potential for a price dip ahead of the options expiry, Bitcoin has shown resilience and continues to attract significant investment. Investors should remain cautious and monitor market developments closely to navigate potential price fluctuations successfully.