Bitcoin traders’ evolving view of BTC’s role in every portfolio bolsters $100K support
Bitcoin (BTC) has struggled to surpass $105,000 since May 10, with a notable drop in demand for leveraged long positions reflected in the declining Bitcoin futures premium. The annualized Bitcoin futures premium peaked at 7% on May 14 but fell to 5%, indicating a shift towards a neutral-to-bearish sentiment. This decline correlates with broader macroeconomic uncertainties and Bitcoin's price movements mirroring the stock market. The S&P 500 futures rebounded on May 15, aligning with Bitcoin's rise from $101,800 to $104,000. Economic indicators show weakness, with a 0.5% drop in April’s Producer Price Index. Increased demand for fixed income is evident as the 10-year US Treasury yield decreased to 4.45%. Bitcoin options indicate strong confidence in the $100,000 support level despite fading optimism. Institutional demand remains robust, with $320 million inflows into US Bitcoin ETFs on May 14, suggesting a shift in perception of Bitcoin as a non-correlated asset. Future price movements depend heavily on macroeconomic trends and the US Federal Reserve's actions.
