Bitcoin Nears All-Time High at $109.7K as Traders Question Sustainability of Rally

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Key Takeaways

Bitcoin Price Momentum Faces Scrutiny

Bitcoin surged past $109,000** on Wednesday, rebounding from a **$105,200 support test, amid eurozone monetary expansion and softening U.S. labor data. Despite proximity to its all-time high, BTC derivatives metrics signal hesitancy:

👉 Why are pro traders skeptical of Bitcoin’s rally?

Eurozone Money Supply & Macro Drivers

The eurozone’s M2 money supply grew 2.7% YoY in April, aligning with U.S. monetary trends. Concurrently, U.S. ADP reported 33,000 job losses in June—fueling recession fears.

"The rally lacks conviction. Traders are pricing in global trade war risks," noted a Chainalysis analyst.

Trade tensions escalate:

Derivatives & On-Chain Signals

Neutral Options Market

Weak Stablecoin Demand in China

Spot ETF Outflows & Investor Sentiment

👉 How to interpret Bitcoin’s derivatives data

FAQ

Q1: Why is Bitcoin’s futures premium below 5% significant?
A1: It reflects neutral-to-cautious sentiment. Traders avoid leveraged longs despite high prices.

Q2: What does the USDT discount in China imply?
A2: Investors are cashing out, signaling low confidence in sustained rallies.

Q3: Are options traders expecting a crash?
A3: No. The 0% skew shows balanced expectations for price swings.

Conclusion

Bitcoin’s price action near $109K lacks derivatives enthusiasm, with macro risks (trade wars, ETF outflows) dampening momentum. While M2 growth supports bullish cases, trader behavior suggests wait-and-see strategies dominate.

This content is for informational purposes only and does not constitute financial advice.


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