30s Summary

The value of Bitcoin increased by 9.7% between October 27 and 29, hitting a high of $73,575, but dipped to $71,500 on October 30. However, several factors suggest it may bounce back above $73,000. The Bitcoin futures premium indicator shows strong interest in buying Bitcoin. Despite Bitcoin’s recent dip, high stablecoin demand in the Chinese market and positive onchain data and derivatives indicators imply a resilient market, hinting at Bitcoin’s potential to maintain its momentum. Meanwhile, a strong U.S. economy raises concerns over the demand for government bonds and the yield on 5-year U.S. Treasury notes has increased from 3.5% to 4.1%.

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Between October 27 and October 29, the value of Bitcoin went up by 9.7%, hitting a high of $73,575. However, it then dipped a bit, down to $71,500 on October 30. But don’t worry: all signs point to Bitcoin bouncing back above $73,000 soon. Various factors, like what’s happening in the derivatives market, onchain stats, and stablecoin demand, all suggest that there’s a good base for this rally.

That good news is backed up by the Bitcoin futures premium indicator. This is a measure of how much interest there is out there for buying Bitcoin. Right now, it’s strong, showing lots of people are keen to invest.

It’s worth noting that the Bitcoin price often tracks with gold. Gold preformed pretty well on October 30, reaching a record high of $2,790, but then lost a bit of steam.

The drop in gold’s value could be due to recent economic data from the U.S., where job growth and GDP are both looking solid. Those positive signs might mean the U.S. Federal Reserve is less likely to cut interest rates again. That could reduce the immediate demand for alternatives like gold and Bitcoin.

But the strong U.S. economy doesn’t automatically mean more demand for government bonds. With the public deficit raising concerns, the government’s cost of refinancing its debt has gone up. That’s seen the yields on 5-year U.S. Treasury notes rise from 3.5% to 4.1% over the past month.

Even though some are questioning the U.S. government’s economic policies, Bitcoin is holding strong. At first, some traders sold off Bitcoin once it broke the $70,000 on October 29. But that didn’t last long and most of the activity was within the expected trading range.

To understand the mood among traders, we can look at stablecoin demand in the Chinese market. High demand pushes stablecoin prices up to 2% above the U.S. dollar, while low demand lowers the price. Despite Bitcoin’s dip of $2,140 on Oct. 30, the data suggests the market is resilient. Combining this with onchain data and derivatives indicators, it seems traders are confident about Bitcoin’s potential to keep its momentum going.

Source: Cointelegraph