Bitcoin Surges Above $109,000 Amidst Cautious Trader Sentiment and Global Economic Concerns
Bitcoin (BTC) reached over $109,000 on Wednesday, briefly testing $105,200 support earlier in the day, fueled by monetary expansion in the Eurozone and weakening signals from the US labour market. Despite nearing its all-time high, traders remain hesitant to fully embrace a bullish outlook, as indicated by Bitcoin derivatives metrics [[1]]. This caution raises questions about the sustainability of the current rally.
Derivatives Data Signals Caution: The Bitcoin futures premium remains below the 5% neutral threshold, despite a slight increase from Monday.This mirrors the pattern observed on June 11th when Bitcoin previously approached the $110,000 level [[1]].
Eurozone Monetary Policy & US Economic Data: The record-high broad money supply (M2) in the Eurozone – a 2.7% year-over-year expansion in April – is believed to be a important driver of the rally, aligning with the expansionary US monetary base [[1]]. Simultaneously, US private payrolls decreased by 33,000 in June, adding to economic uncertainty.
Global Trade Tensions Weigh on Sentiment: Subdued demand for leveraged long positions in Bitcoin is linked to increasing economic recession risks, particularly amidst escalating global trade tensions. US President Donald Trump has threatened increased tariffs on Japanese goods,and the EU is preparing a firmer stance in trade negotiations with the US [[1]]. Eurozone ambassadors have instructed their trade commissioner to adopt a tougher approach in Washington [[1]].
Options Markets Remain Neutral: Bitcoin options markets reflect a similar lack of strong directional bias. the
