Originally published on: December 05, 2024
Bitcoin’s recent unexpected surge of 9.4% in just one day has pushed its price to a remarkable all-time high above $100,000. Following this surge, leveraged buyers have shown a surge in demand, raising questions among traders about the sustainability of this rally and how market whales and makers are positioned in response.
Over at Laevitas.ch, data shows that the annualized premium of Bitcoin 2-month futures has hit an 8-month high. The last time Bitcoin futures traded at such a high premium was back in March, signaling that a similar bullish sentiment may currently be in play.
Despite concerns about futures premiums, many traders are leveraging for short-term trades, with premiums representing only a minor cost for a finite period. With the recent rally of 46% in the past month, traders are optimistic about Bitcoin price movements, making the current premium less of a worry.
Various factors have contributed to Bitcoin’s recent surge, including notable endorsements from figures like President-elect Donald Trump, Russian President Vladimir Putin, and US Federal Reserve Chair Jerome Powell. Additionally, news about the potential inclusion of MicroStrategy in the Nasdaq-100 index has also boosted Bitcoin’s price.
Looking at Bitcoin options markets, the put/call ratio indicates confidence in further upside potential, as open interest in call options continues to outpace put options. This data reveals that the rally above $100,000 may not be solely driven by derivatives markets.
While Bitcoin seems to offer an alternative to traditional financial markets, its short-term trajectory remains vulnerable to external factors that impact global markets. Investor sentiment is closely tied to market conditions, which could influence Bitcoin’s price in the future.
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