Bitcoin stalls at $110K but institutional investors continue gobbling up BTC

Key takeaways:

• Bitcoin is stuck beneath $110,000 owed to macroeconomic uncertainty and Nvidia's net headdress hazard appetite.

• Strong spot BTC ETF inflows and Bitcoin options information are hints that US economical clarity could unlock BTC highs.

Investor sentiment improved connected May 26 aft US President Donald Trump postponed his retaliatory European Union 50% tariffs connected imports. European banal markets responded positively to the development, but Bitcoin (BTC) was incapable to clasp the $110,000 level, starring traders to question whether a caller all-time precocious remains wrong reach.

Even if Bitcoin revisits the $105,000 mark, rising organization involvement and robust derivatives markets bespeak that bullish traders are neither overleveraged nor acrophobic astir a imaginable correction.

Bitcoin 2-month futures annualized ground rate. Source: laevitas.ch

Demand for leveraged agelong Bitcoin positions grew, arsenic evidenced by the BTC futures premium expanding to 8% connected May 26. Although this was a humble emergence from 6.5% the erstwhile day, the metric inactive sits comfortably wrong the neutral scope of 5% to 10%. For context, successful December 2024, the Bitcoin futures premium surged to 20% erstwhile BTC surpassed $100,000 for the archetypal time.

Will Nvidia net and US economical information ignite Bitcoin price? 

President Trump’s determination to hold the EU import duties until July 9 reduced immoderate marketplace uncertainty, yet the broader economical consequences of the ongoing tariff struggle person yet to amusement up successful firm earnings. Investor hazard appetite present hinges successful portion connected Nvidia's (NVDA)  May 28 net report, and anticipation for this perchance explains Bitcoin’s inability to interruption done its erstwhile highs.

Bitcoin options markets are signaling an accrued probability of upward movement. This suggests that whales and marketplace makers stay confident, adjacent with BTC trading conscionable 2.6% beneath its grounds precocious of $111,957.

Bitcoin options 30-day delta skew (put-call) astatine Deribit. Source: laevitas.ch

The antagonistic 6% Bitcoin options delta skew indicates that enactment (sell) options are trading astatine a discount, a emblematic diagnostic of bullish markets. Readings person to zero bespeak a much balanced request betwixt enactment and telephone (buy) options—a inclination observed connected May 25.

It’s apt that the persistent organization request for Bitcoin is gradually shifting the hazard cognition among the world’s largest concern firms. Michael Saylor’s firm, Strategy, acquired $427 million worthy of Bitcoin betwixt May 19 and May 25, astatine an mean terms of $106,237. Meanwhile, spot Bitcoin exchange-traded funds (ETFs) saw different $2.75 cardinal successful inflows during the aforesaid period.

During JPMorgan’s Annual Investor Day connected May 19, CEO Jamie Dimon announced that the slope would finally let clients to acquisition spot Bitcoin ETFs. While the determination does not see custody oregon authoritative recommendations of cryptocurrencies, it opens the doorway to indirect Bitcoin vulnerability for the bank’s $6 trillion successful lawsuit deposits.

Related: Bitcoin’s caller highs whitethorn person been driven by Japan enslaved marketplace crisis

US markets are closed connected May 26 successful observance of the Memorial Day holiday. As a result, immoderate optimism stemming from the delayed US–EU tariffs whitethorn beryllium tempered by ongoing concerns surrounding US authorities debt and the menace of a imaginable economical recession. The caller 5.1% driblet successful MBA Mortgage Applications for the week ending May 23 prompted traders to follow a much cautious stance.

While Bitcoin derivatives metrics stay healthy, upcoming economical information volition beryllium captious for marketplace sentiment. Investors are intimately watching the Richmond Fed manufacturing scale owed connected May 28, followed by the PCE ostentation information connected May 30. These indicators volition apt power hazard appetite and the chances of Bitcoin breaking supra the $112,000 people successful the abbreviated term.

This nonfiction is for wide accusation purposes and is not intended to beryllium and should not beryllium taken arsenic ineligible oregon concern advice. The views, thoughts, and opinions expressed present are the author’s unsocial and bash not needfully bespeak oregon correspond the views and opinions of Cointelegraph.