Just a couple of days ago, news about the Biden administration’s crypto regulations had leaked to the Press. Once the information was made public, investors and analysts were happy that the administration had taken a softer than expected approach. A dovish attitude towards the crypto sector is set to give the bulls a huge boost.
For the first time in a while, BTC prices jumped above the $40,000 level after hovering at the $38,000 level. This after BTC failed to breach the $44,500 mark for the third time in March. The rally that took place on March 9th can be attributed to some extent to the expected release of inflation data. Market experts fully expect the numbers to be at a 40-year high as the CPI touches 7.9%.
In the meanwhile, Janet Yellen, US Treasury Secretary made a statement regarding the President’s order on digital assets. This executive order was much friendlier and not as stringent as expected by market experts. The order calls for a comprehensive and coordinated approach to setting policies to govern digital assets.
The BCOM or Bloomberg Commodities Index touched an all time high of 134 on Tuesday March 8th, which led to a strong performance by BTC. There is open interest on options expiry worth $790 million which is set to happen on Friday. Though these levels look optimistic to investors, BTC had tested this barrier on March 1st. Several scenarios come to mind in the context of Bitcoin prices and it remains to be seen which one will play out.
Bitcoin will have to hold the $42000 level to gain a $100+ million profit. The bear market will have a tough time keeping prices down considering the current sentiment which is positive. The current outlook is that market data for options is in favor of buying.