Originally published on: October 02, 2024
Bitcoin witnessed an 8.3% decline from September 30 to October 1, hitting a two-week low of $60,207. Although there was a slight recovery to $61,300 on October 2, Bitcoin’s price still lags behind its March 2024 all-time high by 16.6%. Comparatively, gold and the S&P 500 are trading close to their recent record levels, with the latter just 2% away.
Despite the price drop, BTC derivatives metrics reveal an interesting scenario among professional traders. While some anticipate socio-political uncertainties impacting short-term prices, historical data shows Bitcoin outperforms after major events, suggesting resilience in the face of market pressures.
The recent report by BlackRock titled “Bitcoin: A Unique Diversifier” emphasizes Bitcoin’s distinct fundamentals compared to traditional assets. With scarcity and decentralization at its core, Bitcoin is seen as a safe-haven option during geopolitical disruptions.
Geopolitical tensions escalated on October 1 when Iran launched missiles at Israel, following a series of events. In the U.S., the upcoming presidential elections in November are adding to market uncertainty. Yet, traders maintain optimism as they cautiously navigate market conditions.
Examining Bitcoin futures and options markets suggests traders remain cautiously optimistic, with no clear signs of a bearish stance among professionals. Despite ongoing uncertainties, it appears that traders are comfortable with the current price levels, signaling a balanced outlook in the market.
