Key takeaway:
Bitcoin’s struggles to overtake the $105,000 level as US macroeconomic headwinds remain a challenge.
Steady inflows from institutional investors and the strength of the $100,000 support point to growing confidence in Bitcoin.
Bitcoin (BTC) has struggled to break above $105,000 since May 10, leading traders to question whether the bullish momentum has faded. Although BTC managed to reclaim the $104,000 level, demand for leveraged long positions has dropped sharply, as indicated by the decline in the Bitcoin futures premium.
Bitcoin 2-month futures annualized premium. Source: laevitas.ch
On May 14, the annualized Bitcoin futures premium peaked at 7%, but then fell to 5%, which is near the neutral-to-bearish threshold and matches the level seen four weeks ago when BTC traded around $84,500.
This decline in demand for leveraged bullish positions appears to be linked to broader macroeconomic uncertainty, since Bitcoin’s price has been closely following movements in the stock