Key takeaways:
Bitcoin is caught beneath $110,000 as a consequence of macroeconomic uncertainty and Nvidia’s earnings cap danger urge for food.
Robust spot BTC ETF inflows and Bitcoin choices knowledge are hints that US financial readability may unlock BTC highs.
Investor sentiment improved on Might 26 after US President Donald Trump postponed his retaliatory European Union 50% tariffs on imports. European inventory markets responded positively to the event, however Bitcoin (BTC) was unable to carry the $110,000 stage, main merchants to query whether or not a brand new all-time excessive stays inside attain.
Even when Bitcoin revisits the $105,000 mark, rising institutional curiosity and sturdy derivatives markets point out that bullish merchants are neither overleveraged nor involved a couple of potential correction.
Demand for leveraged lengthy Bitcoin positions grew, as evidenced by the BTC futures premium growing to eight% on Might 26. Though this was a modest rise from 6.5% the day before today, the metric nonetheless sits comfortably throughout the impartial vary of 5% to 10%. For context, in December 2024, the Bitcoin futures premium surged to twenty% when BTC surpassed $100,000 for the primary time.
Will Nvidia earnings and US financial knowledge ignite Bitcoin worth?
President Trump’s choice to delay the EU import duties till July 9 diminished some market uncertainty, but the broader financial penalties of the continued tariff battle have but to point out up in company earnings. Investor danger urge for food now hinges partially on Nvidia’s (NVDA) Might 28 earnings report, and anticipation for this presumably explains Bitcoin’s incapability to interrupt via its earlier highs.
Bitcoin choices markets are signaling an elevated chance of upward motion. This implies that whales and market makers stay assured, even with BTC buying and selling simply 2.6% beneath its file excessive of $111,957.
The adverse 6% Bitcoin choices delta skew signifies that put (promote) choices are buying and selling at a reduction, a typical attribute of bullish markets. Readings nearer to zero replicate a extra balanced demand between put and name (purchase) choices—a pattern noticed on Might 25.
It’s doubtless that the persistent institutional demand for Bitcoin is regularly shifting the chance notion among the many world’s largest funding corporations. Michael Saylor’s agency, Technique, acquired $427 million price of Bitcoin between Might 19 and Might 25, at a median worth of $106,237. In the meantime, spot Bitcoin exchange-traded funds (ETFs) noticed one other $2.75 billion in inflows throughout the identical interval.
Throughout JPMorgan’s Annual Investor Day on Might 19, CEO Jamie Dimon introduced that the financial institution would finally allow clients to buy spot Bitcoin ETFs. Whereas the transfer doesn’t embody custody or official suggestions of cryptocurrencies, it opens the door to oblique Bitcoin publicity for the financial institution’s $6 trillion in buyer deposits.
Associated: Bitcoin’s new highs may have been driven by Japan bond market crisis
US markets are closed on Might 26 in observance of the Memorial Day vacation. Because of this, any optimism stemming from the delayed US–EU tariffs could also be tempered by ongoing issues surrounding US government debt and the specter of a possible financial recession. The latest 5.1% drop in MBA Mortgage Functions for the week ending Might 23 prompted merchants to undertake a extra cautious stance.
Whereas Bitcoin derivatives metrics stay wholesome, upcoming financial knowledge will probably be vital for market sentiment. Traders are carefully watching the Richmond Fed manufacturing index due on Might 28, adopted by the PCE inflation knowledge on Might 30. These indicators will doubtless affect danger urge for food and the possibilities of Bitcoin breaking above the $112,000 mark within the quick time period.
This text is for common data functions and isn’t meant to be and shouldn’t be taken as authorized or funding recommendation. The views, ideas, and opinions expressed listed below are the creator’s alone and don’t essentially replicate or characterize the views and opinions of Cointelegraph.
