Key results:
Bitcoin (BTC) recovered 108,000 USD on Monday after completing the support level of USD 104,000 at the weekend. Profits occurred when a conflict broke out in the Middle East, and investors reduced the expectations of cuts of interest rates in the United States, signaling stronger trust in the potential of Bitcoin growth.
Sentiments of traders remained stable despite the deteriorating socio-economic prospects, as the indicators of Bitcoin derivative instruments show.
Premium Futures Bitcoin reached 5% on Monday, which is the basis for neutral markets. These monthly contracts usually exchange with a bonus from 5% to 10% to take into account the longer settlement period. Although below 8% was recorded at the end of May, on June 5 a little reaction was reaction of USD 101,000, which indicates market resistance.
Bitcoin Bitcoin rotary funds in the USA (ETFS) recorded 301.7 million dollars on Friday compared to the additional purchase of an additional $ 1.05 billion purchase on Monday.
Oil prices initially increased on Sunday, and the Futures from West Texas Intermediate (WTI) reached 78 USD before they went back. Until Monday, WTi Futures fell to around USD 71.50 per barrel, which coincided with a 1.5% boost in Futures Nasdaq. According to Yahoo Finance, market participants expect tensions in the Middle East ease.
Bitcoin encounters obstacles from energy costs and delayed FED rates
Bitcoin path to recover USD 110,000 may be more arduous than expected, because some analysts indicate risk rising energy prices. Philippe Gijsels, strategy director at BNP Paribas Fortis, said on Monday CNBC that “the market reaction was very modest, so there is room for disappointment if things would be escaped.”
In addition to concerns about energy markets, increased uncertainty also reduces the likelihood of lowering the interest rates of the US Federal Reserve. The growing inflation pressure forced traders to make a price of 63% chance that the FED will maintain a rate of 4% or more until November, compared to 56% a month earlier, according to CME Fedwatch.
The growing trust of Bitcoin Traders was also observable on the BTC option on the market, where 25% Skew Delta (Put-Call) fell into a neutral 1% on Monday, after reaching 6% on Sunday. Readings above 5% are generally perceived as bear, reflecting higher demand for the protective options for market producers and arbitration offices.
Related: Trump’s Truth Social Files S-1 for double bitcoin and ETF ether
Bitcoin trads only 4% below its level 111,965 USD of all time from May 22, despite the growing fears of uncertainty and recession, while derivative indicators remain neutral. This environment is conducive to further recognition of prices, because the bears failed to start panic in connection with the escalation of global tensions.
Apparently Ed Yardeni of Yardeni Research excellent On Monday, that US President Donald Trump “does not seem so ready to break away from the trade war as expected”, adding that the debate on the trade war is far from the end.
Ultimately, the Bitcoin path to USD 112,000 remains closely related to the reduced uncertainty associated with the tariff, regardless of development in the Middle East.
This article is used for general information purposes and should not be and should not be treated as legal or investment advice. The views, thoughts and opinions expressed here are themselves and do not necessarily reflect or represent the views and opinions of Cointelegraph.
