Bitcoin’s sustained uptrend over the past few weeks comes amid an improving risk-on sentiment across the broader financial markets.
It is also a result of the “de-escalation signals in US-Iran/Middle East tensions,” Andri Fauzan Adziima, research lead at cryptocurrency exchange Bitrue, told Decrypt, noting that “easing oil spikes and risk-off pressure, combined with a softer core CPI print and rebounding spot Bitcoin ETF inflows absorbing supply,” have driven the move.
Bitcoin’s outlook shows considerable improvement, especially in the options market, amid a relatively stable geopolitical landscape.
However, the improvement in skew indicates that investors have reduced their bearish exposure, suggesting that selling pressure is easing.
“Despite this, a decline in the Volatility Spread implies continued cautious sentiment,” Glassnode analysts said.
Bitcoin’s recent move toward $75,000 is primarily spot-driven, Adziima noted, suggesting that strong ETF inflows along with declining futures open interest and funding rates point to “deleveraging and healthier momentum.”
If the leading crypto manages to hold above $75,000, “it could open the path toward $80,000,” particularly if “ETF inflows and institutional demand remain supportive,” Wenny Cai, Founder of Anchored Finance, told Decrypt.
However, sticky inflation, restrictive Federal Reserve policies, and deterioration in global risk sentiment, either due to the end of the two-week truce and an escalation of Middle East tensions, could reintroduce volatility and push Bitcoin back into its prior range, experts warned.
