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Bitcoin (BTC) recovered $ 108,000 on Monday after withdrawing the level of support of $ 104,000 during the weekend. The gains occurred as the conflict broke out in the Middle East and investors have reduced expectations in terms of interest rates in the United States, signaling stronger confidence in the potential for Bitcoin increase.
The feeling of traders has remained stable despite the worsening of socio-economic perspectives, as shown by the metrics of Bitcoin derivatives.
Bitcoin Futures Premium reached 5% on Monday, the basic line of neutral markets. These monthly contracts are generally negotiated at a bonus of 5% to 10% to take into account the longer payment period. Although below 8% recorded in late May, there was little reaction during the retest of $ 101,000 on June 5, indicating market resilience.
Friday, the Bitcoin Bitcoin Bitcoin Bitcoin funds experienced $ 301.7 million in net entries of $ 301.7 million, and the announcement of the additional $ 1.05 billion purchase strategy helped facilitate the concerns of merchants concerning a potential economic recession and the negative effects of the conflict involving Iran, global oil.
Oil prices initially increased on Sunday, with term contracts on West Texas Intermediate (WTI) reaching $ 78 before backing up. On Monday, the term contracts on WTI fell at around $ 71.50 per barrel, a decision which coincided with a gain of 1.5% in the term contracts on the NASDAQ. According to Yahoo Finance, market players expect tensions in the Middle East to relax.
Bitcoin is facing obstacles to energy costs and delayed Fed rate drops
The path that Bitcoin to recover $ 110,000 could be more difficult than expected, because some analysts highlight the risk of increasing energy prices. Philippe Gijsels, Director of the BNP Paribas Fortis strategy, told CNBC on Monday that “the reaction of the market was very modest, so there is a place for disappointment if things were to degenerate”.
In addition to the concerns about energy markets, increased uncertainty also reduces the probability that the American federal reserve reduces interest rates. The increase in inflationary pressure pushed traders at a price in 63% of the Fed maintained rates of 4% or more in November, against 56% a month earlier, according to CME Fedwatch.
The growing confidence of Bitcoin traders was also obvious on the BTC options market, where the 25% Delta Skew (Put-Call) fell to 1% neutral, after reaching 6% on Sunday. Readings above 5% are generally considered to be lowering, reflecting a higher demand for market manufacturers and arbitration offices.
In relation: Trump S-1’s social files for the double bitcoin and ether
Bitcoin is negotiated at only 4% below its $ 111,965, on May 22, despite uncertainty and recession fears, while derived measures remain neutral. This environment promotes the appreciation of additional prices, because the bears have failed to trigger panic in the middle of global climbing tensions.
Ed Yardeni from Wardeni Research would have noted on Monday that US President Donald Trump “does not seem to be ready to move away from his trade war as hoped for”, adding that the trade war debate is far from over.
In the end, the Bitcoin path at $ 112,000 remains closely linked to the reduced uncertainty of prices, regardless of developments in the Middle East.
This article is for general information purposes and is not intended to be and must not be considered as legal or investment advice. The points of view, the thoughts and opinions expressed here are the only of the author and do not reflect or do not necessarily represent the opinions and opinions of Cointellegraph.
