**Crypto News**
**Analysis**
**Blofin Reveals Insights on Bitcoin (BTC) for the Upcoming Week**
Cryptocurrency analysis firm Blofin has shared their expectations for Bitcoin (BTC) in the upcoming week.
**Author:**
Mete Demiralp
02.07.2024 – 07:03
Updated:
6 seconds ago
**Blofin Academy’s New Report on Bitcoin’s Performance**
Blofin Academy has issued a fresh report detailing the factors likely to influence Bitcoin’s (BTC) price movements in the near future.
The report highlights several key elements:
**Rising Bond Yields:**
The rapid increase in bond yields following the market’s July 1 opening is attributed to the Federal Reserve’s use of Overnight Reverse Repurchase Agreements to drain market liquidity, coupled with treasury bond sales driving up yields.
**Yen/Dollar Exchange Rate Decline:**
The steep decline in the yen/dollar exchange rate prompted the Bank of Japan to stabilize Japanese government bond yields by selling US treasury bonds and purchasing Japanese government bonds.
**Investor Behavior:**
As US Treasury yields climbed, investors showed a heightened preference for risk-free assets. This shift is evident in the broader macro asset allocation, with prices of safe-haven assets such as gold, silver, and the DXY rising collectively. Central banks’ increasing demand for gold sustains its high prices. In contrast, risk asset price movements are now more influenced by hedging behavior.
**Liquidity Levels and Market Sentiment:**
Blofin predicts that the cryptocurrency market’s liquidity will remain low in the near term. Despite approaching macro events causing the butterfly index to rise slightly, investors remain cautiously optimistic about potential systemic risks.
**Butterfly Index:**
This index assesses the relative abundance of out-of-the-money (OTM) high-strike call options and low-strike put options, comparing ATM volatility with Deribit’s bitcoin volatility index (DVOL). A rise in the index suggests stronger demand for OTM options, indicating investor concerns about market uncertainty.
**Market Maker Influence:**
Blofin notes a weakening influence of market makers on price stability. The gamma peak around $63,000 presents significant upward resistance for BTC, while the downside shows considerable negative gamma with few support levels. Thus, if an unexpected event occurs, the downside risk remains high.
*This information is not investment advice.*
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