Bitcoin Takes Aim At New Highs Despite Bearish Factors
Bitcoin (BTC) reclaimed $108,000 after testing the $104,000 support level, driven by geopolitical tensions and reduced expectations for US interest rate cuts. Traders maintained steady sentiment, with Bitcoin futures premium at 5%, indicating market resilience. US-listed spot Bitcoin ETFs saw $301.7 million in net inflows, and an additional $1.05 billion purchase eased recession concerns linked to Middle Eastern conflicts. Oil prices initially surged but fell to around $71.50 per barrel, coinciding with a 1.5% gain in Nasdaq futures. Analysts caution that rising energy costs and uncertainty about Fed rate cuts could hinder Bitcoin's rise to $110,000. The likelihood of the Fed maintaining rates at 4% or higher has increased. Bitcoin remains 4% below its all-time high, with neutral derivatives metrics favoring potential price appreciation amid global tensions. The path to $112,000 is tied to reduced tariff-related uncertainty.
