Bitcoin’s price rebounded to $69,000 on June 12 after dropping to $66,000 the day before due to various factors such as uncertainties in the macroeconomic landscape, selling pressure from miners, and outflows from spot exchange-traded funds (ETFs). The positive inflation data in the United States created a more favorable environment for risk-on assets like Bitcoin, leading to the S&P 500 reaching a record high on the same day.
There is now a debate among traders about whether Bitcoin can surpass the $72,000 mark, with the derivatives market indicating that such a possibility is feasible.
The resilient inflation data in the U.S. supports risk-on assets, including Bitcoin. The Consumer Price Index (CPI) for May showed a 3.3% increase from the previous year, driven by a 3.6% decrease in energy prices. Despite being higher than the U.S. Federal Reserve’s target, the data was lower than market expectations, potentially leading to interest rate cuts by September. This resulted in selling pressure on U.S. Treasurys and a decrease in the two-year yield to 4.68%, the lowest in 10 weeks.
To determine if Bitcoin’s surge on June 12 was sustainable or just a short-term reaction to macroeconomic conditions, it is essential to monitor the movements of miners and ETFs. The trajectory of Bitcoin towards $72,000 will depend significantly on institutional inflows, regardless of the positive outlook on inflation and economic recession possibilities that investors may be considering.
Concerns also arise about miners influencing BTC price trends. Large transfers of Bitcoin from miners to exchanges can lead to fears of a sharp price decline, as seen on June 11 when Marathon Digital sold 1,000 BTC worth nearly $70 million. Additionally, U.S.-listed spot Bitcoin ETFs experienced a collective net outflow of $65 million on the same day, hinting at potential concerns among investors, especially ahead of critical macroeconomic events.
Despite the dip in Bitcoin’s price to $66,000, the derivatives market showed resilience, suggesting that traders were not overly reliant on excessive leverage. The Bitcoin two-month futures premium briefly touched the neutral 10% level on June 11 before rising to 13%, indicating a cautiously optimistic sentiment among traders.
While there was an uptick in put option activity, signaling a slightly more neutral or bearish market outlook, the overall sentiment in both the Bitcoin futures and options markets remained bullish. This indicates that Bitcoin still has the potential to achieve further gains up to $72,000.
Disclaimer: This content is for informational purposes only and should not be construed as legal or investment advice. The views expressed are solely those of the author and do not necessarily represent those of Cointelegraph.