Stars align for Bitcoin rally to $100K, but futures traders exercise caution — Here’s why
Bitcoin (BTC) broke out of a trading range of $93,000 to $95,600 on May 1, reaching a peak of $97,930. Despite this, sentiment remains neutral due to concerns over a global tariff dispute impacting macroeconomic data and fears of a recession, which may hinder BTC's price potential for 2025. The annualized premium for Bitcoin’s two-month futures has stabilized between 6% and 7%, indicating weakened trader optimism compared to earlier in the year. Gold's recent 20% rally has overshadowed Bitcoin's gains, raising concerns about its status as "digital gold." Net inflows into US spot ETFs suggest a shift towards delta-neutral strategies, limiting direct price impact. The BTC options market shows moderate optimism, with whales indicating higher odds for price increases. However, Bitcoin's performance is closely tied to US-China trade relations, which may prevent it from reaching new highs in the near term. Overall, BTC derivatives lean slightly towards bullish sentiment.
