Bitcoin Rises to $109k, but Pro-Traders Take Caution

Takeaways from the conference:

• Bitcoin is near its all-time highest price, but data on derivatives shows that traders are still cautious and uncommitted.

• Investors are concerned about global trade tensions, as evidenced by the USDT discount and outflows from spot Bitcoin ETFs.

BitcoinBTCThe price of the euro rose above $109,000 on Wednesday. It had briefly tested the support level at $105,200 earlier in the morning. This rally was accompanied by data showing an expansion of the Eurozone’s monetary system and signs that the US labor market is weakening.

BTC reports that despite Bitcoin’s price being just 2% off its high, investors are still reluctant to go bullish. derivatives metrics. Some investors are now questioning the viability of the current rally.

The Bitcoin futures premium was below the neutral 5% threshold on Wednesday. The small increase of 4% from Monday continues a trend started on June 11 when the indicator was last in bullish territory. It coincided with Bitcoin’s test at the $110,000 mark.

Bitcoins’ rally is attributed to the increase in eurozone money supply.

The eurozone’s broad money (M2) reaching a record in April played a major role. Data released on Monday showed that the eurozone’s broad money supply (M2) grew by 2.7% over the past year, in line with expectations. expansionary trajectory The US currency base. ADP reported that US private payrolls dropped by 33,000 during June.

Some market participants claim that the low demand for long leveraged positions in Bitcoin is due to the increased volatility. economic recession risksIn particular, amid an escalating trade war. US President Donald Trump threatened to increase import tariffs for Japanese goods over 30% if an agreement was not reached by the deadline of July 9.

Eurozone ambassadors have directed EU Trade Commissioner Maroš Šefčovič to adopt a tougher stance during his trip to Washington this week, according to the Financial Times. According to reports, European capitals called for a decrease in the 10% reciprocal duty. However, internal disagreements remain over how best to respond.

Bitcoin Options Markets Neutral and Weak Stablecoin Demand in China

It’s useful to look at BTC options to determine if the lack of interest in Bitcoin derivatives are limited to futures. The 25% delta skew will rise to above 6% if traders are anticipating a steep downturn. Put (sell) option prices would be higher than call (buy) price options.

The skew is currently at 0%. This has not changed from the two previous days, which suggests that traders are assessing risks equally for both price movements in one direction and another. This reflects the lukewarm mood at $109,000, but it is still an improvement over the bearish sentiment observed on the 22nd of June.

Related: Will Bitcoin benefit from ‘Big Beautiful Bill’ passage and US debt ceiling increase?

According to stablecoin premium, despite Bitcoin reaching its highest price in three weeks, the demand for cryptocurrency has dropped sharply in China.

Tether)USDTInvestors who have withdrawn from the crypto market are usually reflected in a discount of less than official US Dollar exchange rates. Stablecoins tend to rise above their fixed rate when there is a strong demand for cryptos. This 1% price cut is the biggest since May, showing a lack in confidence about Bitcoin’s recent gains.

The ongoing tariff war has caused traders to become increasingly worried, particularly after Tuesday’s announcement. $342 million in net outflows Spot Bitcoin Exchange Traded Funds (ETFs) are a good way to get Bitcoins. The subdued derivatives activity reflects the macroeconomic uncertainties.

This article was written for general information only and does not constitute legal or investment advice. These are solely the opinions, views and thoughts of the author and may not reflect the opinions and views of Cointelegraph.