The emerging view of Bitcoin BTC’s Bitcoin Traders in each portfolio Bolsters $ 100k support

Key Takeaway:

• Bitcoin’s struggles to reach the $ 105,000 level because US macroeconomic headwinds remain a challenge.

• The stable streams from institutional investors and the strength of the $ 100,000 point of support to growing Bitcoin’s growing trust.

Bitcoin (Btc) has been struggling to break up above $ 105,000 since May 10, leading entrepreneurs to ask if the bullish momentum faded. Although BTC manages the level of $ 104,000, demand for long positions has dropped sharply, as indicated by the fall of the premium of Bitcoin futures.

On May 14, Bitcoin’s annual premium futures faded 7%, but then fell to 5%, near the neutral-to-bearish threshold and corresponds to the level seen four weeks ago when the BTC exchanged around $ 84,500.

This decline of demand for leveraged bullish positions appears to be linked to greater macroeconomic uncertainty, as the price of bitcoin closely complies with the movements in the stock market.

The S&P 500 futures returned to early weakness on May 15, in conjunction with the rebound of Bitcoin from $ 101,800 to $ 104,000. Investors seem more confident that US treasury will be forced Injection of liquidity After the Federal Reserve Chair Jerome Powell warned that “supply shocks” could maintain higher interest rates longer than expected.

Signs of economic weakness also arise. The US Bureau of Labor Statistics reported that the April producer price index had dropped 0.5% from last month, while economists reviewed by the factset expected an increase of 0.2%. According to Reuters, the limited risk of investor risk is also influenced by the ongoing world trade TensionsBecause the US -China tariff agreement remains a temporary solution.

The demand for fixed revenue increased, with the yield of the 10-year US Treasury dropping 4.45% after reaching 4.55% on May 14, reversing last week’s course. Historically, Bitcoin tends to perform better when government bonds are rising, as these signals have reduced the confidence of the treasury’s ability to manage its debt.

Bitcoin’s rally at $ 105,000 hinges in macroeconomic trends

To assess whether traders simply avoid action or active betting on a price decline, it is a useful study Bitcoin options Demand. Usually, bearish sentiment periods pushed the BTC delta skew indicator above the neutral 6% threshold.

Contrary to expectations, Bitcoin Put (Sell) options trade in a discount compared to call options (buy), which signed a strong trust at the support level of $ 100,000. However, the optimism visible on May 14 is fading, with the indicator today in a neutral -4%.

Related: What does the 10-year yield of treasury mean for crypto yields and stablecoins

Since the price of Bitcoin is close to mirroring the US stock market, the opportunities to break above $ 105,000 depends on the macroeconomic developments, such as the US Federal Reserve balance balance trends and backwards risks. Noteworthy, Bitcoin’s high relationship with the S&P 500 rarely continues for more than two months.

Net Inflows of $ 320 million in US Bitcoin Funds exchanged by exchange (ETF) On May 14 points to the ongoing institutional demand. This indicates that investors are gradually transferring their perception to Bitcoin from a risk-on asset to a not correlated instrumentThat can reduce the likelihood of sharp price correction, even in the absence of strong bullish positions.

This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.