Bitcoin has been trading in a $107,300 to $110,600 range, igniting speculation about a potential rally. The recent decrease in demand for downside protection in Bitcoin derivatives indicates growing investor confidence. Amidst US import tariff hikes raising recession fears, Bitcoin's role as a hedge is becoming more appealing. Market analysts note that Bitcoin has historically lagged behind global monetary supply growth, implying possible gains. Furthermore, the extension of US tariff deadlines signals potential stability that could lend support to a surge towards $120,000. Notably, demand for options on Deribit highlighted both heightened bearish sentiment and a subsequent shift back to optimism, as the put-to-call ratio normalized. Although Bitcoin's futures premium dipped over the weekend, it rebounded above neutral levels, reinforcing positive sentiment. While broader economic concerns persist, Bitcoin's resilience above $107,000 amidst these challenges enhances its rally prospects. Overall, investor perception needs to shift for a significant price movement to occur.

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