🚀 Bitcoin rallies to $109.7K but pro traders question BTC’s price momentum
Bitcoin surged above $109,000 on Wednesday after briefly retesting the $105,200 support level earlier in the day. The rally coincided with data showing monetary expansion in the eurozone and signs of weakness in the United States labor market.
Despite Bitcoin trading just 2% below its all-time high, traders remain reluctant to turn bullish, according to BTC derivatives metrics. This cautious stance has led some investors to question the rally’s sustainability.
On Wednesday, the Bitcoin futures premium remained below the 5% neutral threshold. The slight increase from 4% on Monday continued a trend that began on June 11, when the indicator last approached bullish territory, coinciding with Bitcoin's previous test of the $110,000 level.
🔸 Is the eurozone money supply increase behind Bitcoin's rally?
Although it is difficult to identify a single catalyst for Wednesday’s rally, the eurozone’s record-high broad money supply (M2) in April likely played a significant role. The data, released Monday, showed a 2.7% year-over-year expansion, aligning with the expansionary trajectory of the US monetary base. Meanwhile, ADP data showed US private payrolls fell by 33,000 in June.
Some market participants argue that the subdued demand for leveraged long positions in Bitcoin reflects the heightened economic recession risks, particularly amid an escalating global trade war. US President Donald Trump has threatened to raise import tariffs on Japanese goods above 30% if no agreement is reached before the July 9 deadline.
Eurozone ambassadors have directed EU Trade Commissioner Maroš Šefčovič to adopt a tougher stance during his trip to Washington this week, according to the Financial Times. European capitals reportedly called for a reduction in the current 10% reciprocal tariff, although internal disagreements persist over whether to retaliate.