bitcoin is demonstrating remarkable strength as it approaches new all-time highs, even amid global tensions and economic uncertainties. Traders remain confident, with inflows into US-listed spot bitcoin ETFs and neutral derivatives signals signaling robust sentiment.
bitcoin’s Rebound and Confidence
bitcoin reclaimed $108,000 after retesting support levels over the weekend, highlighting strong buyer interest. Despite escalating conflicts in the Middle East and rising energy prices, bitcoin’s resilience persists, supported by positive ETF flows and derivatives data. The bitcoin futures premium held steady at 5%, indicating neutrality and resilience during recent retests.
Impact of Geopolitical Tensions and Oil Prices
Oil markets saw initial surges but stabilized by Monday, with WTI futures dropping to around $71.50 per barrel. This stabilization coincided with a 1.5% rise in Nasdaq futures, reflecting cautious optimism among investors. According to Yahoo Finance, expectations are that Middle East tensions may ease, but energy costs remain a concern for bitcoin’s rally. analysts warn that rising energy prices could challenge bitcoin’s path toward $110,000.
US ETF Inflows Bolster market Sentiment
US-listed spot bitcoin ETFs experienced $301.7 million in net inflows last Friday, complemented by an additional $1.05 billion purchase announced on Monday. These inflows help mitigate recession fears amid ongoing geopolitical conflicts involving major oil producers like Iran. The steady ETF inflows signal investor confidence in bitcoin despite macroeconomic headwinds.
Derivatives Metrics Show Steady Confidence
The 30-day bitcoin options delta skew dropped to a neutral 1%, down from 6% on Sunday, suggesting reduced demand for protective puts and an overall optimistic outlook among traders. This shift indicates that participants are not overly worried about sudden downturns, even with rising inflation pressures and geopolitical risks. According to CME FEDWatch, traders now see a 63% chance that the Federal Reserve will maintain interest rates at or above 4% through November, reflecting persistent inflation concerns.
Challenges on the Horizon: Energy Costs and Fed Rate Delays
Experts like Philippe Gijsels of BNP Paribas Fortis warn that rising energy costs could impede 's move beyond $110,000 if escalation occurs in energy markets or geopolitical conflicts intensify. Additionally, the possibility of delayed Federal Reserve rate cuts remains a bearish factor weighing on the crypto 's near-term trajectory. Despite these hurdles, remains just 4% below its May all-time high of $111,965, supported by stable derivatives metrics and resilient investor confidence.
market Outlook: Continued Potential for Upside Movement
As macroeconomic uncertainties persist, 's resilience suggests further potential for appreciation if geopolitical tensions ease and energy prices stabilize. Analysts believe that current derivatives positioning favors further upward movement while cautioning against unexpected shocks from energy or monetary policy developments. Ultimately, 's ongoing rally underscores its role as a hedge amid turbulent global economic conditions. This environment makes understanding macro factors crucial for traders aiming to capitalize on upcoming bullish opportunities.
