Bitcoin traders are still expecting new highs by 2025

The key takeaways

• BTC options and futures show a stable sentiment of investment despite recent price fluctuations.

• Bitcoin is less likely to reach its previous all-time highest level due to the macroeconomic instability and escalating US Trade War.

BitcoinBTCBetween May 27th and 30th,, fell by 5.5%. It retested $104,000 for the very first time since 11 days. Professional Bitcoin traders remain optimistic despite the correction. This is reflected by BTC derivatives and in China’s continued demand for stablecoins.

BTC is moving closely in line with US Government Bonds, which suggests that macroeconomic issues are most likely to be behind the recent weakness after the high point of $111 970 on May 22, 2018. US President Donald Trump’s trade war has led to a more conservative investment environment.

Yields 10-year US Treasury bonds As investors looked for the security of government-backed investments, yields fell to 4.42%. Falls in yields show traders accepting lower returns. This indicates increased purchasing activity. The shift in Bitcoin prices coincided with the $7,900 drop from May 22-May 30.

Bitcoin’s futures premium has remained unchanged since May 27 when BTC was trading near $110,000. The current level is comfortably in the neutral range of 5%- 10%, which makes it unlikely that the futures caused the recent correction. It’s important to note that there is no evidence of a correlation between futures and the correction. excessive leverage Contributions reached a record high on 22 May.

Open interest, or 700,000 BTC in total, was just 2% less than the previous day’s level, indicating that there has been no change in appetite by traders for leveraged trades. The liquidation of BTC bullish futures positions was $323,000,000 over the course of four days. That is less than 0.5%.

Bitcoin Options Market also showed limited reactions to the $104,000 Retest. The 25 delta skew still remains in the neutral area of -6% to +16%. This shows that traders continue to price equal probabilities both for up and down movements. When whales or market makers anticipate further decline, this metric typically rises over 6%, as sell (put) options start to trade higher.

Related: Hyperliquid whale losses near $100M after Bitcoin dips below $105K

TetherUSDTThe price of ) in China has fallen by only 0.4% compared to the USD/CNY exchange rate. This indicates that the decline in Bitcoin has not led to a mass exodus from the cryptocurrency market. Investors are likely to be moving into stablecoins while they await a reduced level of macroeconomic uncertainty.

Bitcoin and US Treasurys have a strong correlation in the short term. BTC derivatives The pullback of $104,000 is not alarming to professional traders, according to metrics. Technically, the correction doesn’t indicate a drop in interest among traders. This is despite $347 million of net outflows on May 29, from spot Bitcoin ETFs.

This article was written for general informational purposes. It is not meant to provide investment or legal advice. This article is solely for informational purposes. It does not represent or reflect Cointelegraph’s views.