Bitcoin is showing strong performance, recently reclaiming $108,000 after testing the $104,000 support level. This surge comes amidst rising oil prices and ongoing conflicts in the Middle East, which typically create cautious market sentiment. Interestingly, traders are expressing a rare confidence in Bitcoin's potential to break past previous highs. On June 5, Bitcoin futures premium reached 5%, indicating a neutral sentiment in the market, where monthly contracts usually trade at a 5% to 10% premium.
The positive trajectory was bolstered by substantial inflows into spot Bitcoin exchange-traded funds (ETFs), which saw net inflows of $301.7 million recently. Additionally, a noteworthy purchase of $1.05 billion announced by Strategy on June 16 aims to strengthen traders' optimism against economic recession fears linked to Middle Eastern tensions.
Oil prices have fluctuated with West Texas Intermediate (WTI) futures peaking at $78 before easing to around $71.50 per barrel. Analysts suggest that while pressures from energy costs remain, overall market confidence in Bitcoin is illustrated through falling delta skew ratios in options trading, signaling less demand for protective puts.
Despite these factors, challenges persist for Bitcoin’s ascent to $112,000, particularly with inflation concerns leading traders to speculate on tighter monetary policy from the US Federal Reserve. Current expectations suggest a 63% probability that rates will remain stable at 4% or higher by November. The dynamics in the derivatives market reflect this sentiment, as a drop in put-call skew points to increasing confidence among traders.
Even with ongoing geopolitical uncertainties and inflation risks, Bitcoin is now just 4% shy of its record $111,965 high. According to market experts, overcoming tariff-related issues will also be crucial for its continued rise. This environment appears favorable for price growth, as bearish sentiment has failed to create panic among investors.
The positive trajectory was bolstered by substantial inflows into spot Bitcoin exchange-traded funds (ETFs), which saw net inflows of $301.7 million recently. Additionally, a noteworthy purchase of $1.05 billion announced by Strategy on June 16 aims to strengthen traders' optimism against economic recession fears linked to Middle Eastern tensions.
Oil prices have fluctuated with West Texas Intermediate (WTI) futures peaking at $78 before easing to around $71.50 per barrel. Analysts suggest that while pressures from energy costs remain, overall market confidence in Bitcoin is illustrated through falling delta skew ratios in options trading, signaling less demand for protective puts.
Despite these factors, challenges persist for Bitcoin’s ascent to $112,000, particularly with inflation concerns leading traders to speculate on tighter monetary policy from the US Federal Reserve. Current expectations suggest a 63% probability that rates will remain stable at 4% or higher by November. The dynamics in the derivatives market reflect this sentiment, as a drop in put-call skew points to increasing confidence among traders.
Even with ongoing geopolitical uncertainties and inflation risks, Bitcoin is now just 4% shy of its record $111,965 high. According to market experts, overcoming tariff-related issues will also be crucial for its continued rise. This environment appears favorable for price growth, as bearish sentiment has failed to create panic among investors.
