Bitcoin (BTC) bounced back from a low of $66,000 on June 12, finding support at $69,000. This drop was attributed to various factors such as macroeconomic uncertainties, miner selling pressure, and outflows from spot exchange-traded funds (ETFs). However, the market saw a positive turn as moderately positive inflation data in the United States created a more favorable environment for risk-on assets, including Bitcoin. This led to the S&P 500 reaching a record high on June 12.
Traders are now contemplating whether Bitcoin can surpass the $72,000 mark, with indicators from the derivatives market suggesting that this might be a possibility.
The recent inflation data in the U.S. has favored risk-on assets like Bitcoin. The U.S. Consumer Price Index (CPI) for May showed a 3.3% increase from the previous year, driven by a 3.6% decrease in energy prices. While this figure was higher than the U.S. Federal Reserve’s target, it was lower than market expectations, hinting at potential interest rate cuts by September. As a result, U.S. Treasurys experienced selling pressure, leading to the two-year yield dropping to its lowest in 10 weeks at 4.68%.
To determine if Bitcoin’s surge on June 12 was sustainable, it is important to keep an eye on miner and ETF outflows. The trajectory of Bitcoin towards $72,000 will largely depend on institutional inflows. Concerns remain among investors regarding miners dictating BTC price trends, especially after a significant sell-off by Marathon Digital on June 10. Additionally, U.S.-listed spot Bitcoin ETFs saw a net outflow of $65 million on the same day, adding to the market’s uncertainty.
Despite these challenges, Bitcoin derivatives displayed resilience during the drop to $66,000. Traders seemed cautious and not overly reliant on excessive leverage, as indicated by the Bitcoin futures premium. This metric briefly touched the neutral 10% level on June 11 before rising to 13%, reflecting a cautiously optimistic sentiment among traders.
Analyzing the balance between the demand for call and put options is crucial to understanding market sentiment accurately. While there was a predominance in call options volume on June 10 and June 11, the put-to-call ratio reached its highest level in two weeks, indicating a slight increase in demand for protective put options. However, overall, both the Bitcoin futures and options markets suggest a bullish sentiment, leaving room for further gains up to $72,000.
This article serves as general information and should not be taken as legal or investment advice. The opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.