Bitcoin (BTC) recently surged to $97,930, breaking out of a tight trading range, sparking excitement among investors as institutional demand soared. However, despite the bullish movement, traders remain cautious about a sustained rally. Futures pricing indicates a lack of confidence in a continued uptrend, with the annualized premium for Bitcoin's two-month futures hovering between 6% and 7%, suggesting weakened sentiment compared to earlier this year.

The surge in BTC's price coincided with significant net inflows of $3.6 billion into US spot exchange-traded Bitcoin funds (ETFs). This influx of funds, however, may not directly impact the price, as some speculators believe it could be driven by delta-neutral strategies or hedging activities.

Despite Bitcoin's recent gains, some investors are looking to gold, which has seen a 20% rally to a market capitalization of $21.7 trillion, overshadowing Bitcoin's achievements. Concerns over Bitcoin's correlation with the stock market and its narrative as "digital gold" have led to doubts about its long-term performance.

In the options market, BTC options lean bullish, with the 25% delta skew metric indicating that market participants, including whales and market makers, are assigning higher odds to further upside from current levels. This shift in sentiment suggests that professional traders anticipate further price gains for Bitcoin.

While Bitcoin derivatives point towards moderate optimism and potential price gains, leverage use remains low, indicating a cautious approach from traders. The ongoing global trade tensions, particularly between the US and China, continue to influence Bitcoin's performance, with the cryptocurrency tracking movements in the S&P 500. This correlation may hinder Bitcoin from reaching a new all-time high in the near term.

Overall, despite the mixed sentiment in the market, Bitcoin derivatives suggest a slight bias towards bullish expectations. The caution among traders, coupled with the macroeconomic risks and global trade tensions, may present challenges for Bitcoin's price rally in the coming months.

As always, it's essential for investors to conduct thorough research and consider various factors before making any investment decisions. The cryptocurrency market can be volatile, and it's crucial to stay informed and seek professional advice when necessary.

Source: https://cointelegraph.com/news/stars-align-for-bitcoin-rally-to-100-k-but-futures-traders-exercise-caution-here-s-why?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound