Bitcoin derivatives data predicts BTC price below $30,000

The bulls have been overly optimistic that $32,000 will convert to support. The impact of this misjudgment will become apparent when the BTC options expire.

Bitcoin (BTC) briefly broke above $32,000 on May 31, but the joy was short-lived. Less than 4 hours later he fell under it again. Compared to the low of $27,000 on May 12, the rise to $32,300 represents a gain of 20 percent. This has given the bulls renewed hope and set up higher call options around $34,000.

On June 1, they were negatively surprised when BTC collapsed $7.6 in less than six hours and fell below $30,000. This slump coincided with the start of the Federal Reserve's balance sheet rundown.

On June 2, former CEO of crypto exchange BitMEX Arthur Hayes stated that Bitcoin's bottom in May may have been a strong signal. Using on-chain data, Hayes forecasts strong support at $25,000.

While analysts are making optimistic forecasts, the threat of regulation is further dampening investor optimism. On June 2, there was more negative news when the US regulator, the CFTC, filed a lawsuit against Gemini Trust Co for allegedly misleading statements made in 2017 related to the valuation of a Bitcoin futures contract.

On June 7, a bill banning digital assets as a means of payment was tabled in the Russian Parliament. The draft law roughly defines digital financial assets as "electronic platforms" that can be recognized as subjects of the national payment system and are required to report to the central bank registry.