Key takeaways:
Spot Bitcoin ETF inflows and low leverage suggest the BTC rally has room to grow.
US Federal Reserve liquidity and weak bond sales support a Bitcoin push beyond $110,000.
Bitcoin (BTC) was unable to sustain its bullish momentum after reaching a new all-time high of $109,827 on May 21, which led traders to question whether derivatives markets mainly drove the rally. From a broad perspective, the $77 billion in Bitcoin futures open interest has undoubtedly played a role. However, a closer look at the data shows a more positive outlook for further price gains.
Bitcoin 2-month futures annualized premium. Source: Laevitas.ch
The current 7% annualized Bitcoin futures premium is well within the neutral range of 5% to 10%, which has been typical for the past two weeks. This indicator can easily exceed 30% during periods of strong optimism, so the current level is relatively low. At the