Recent trends indicate a decline in demand for downside protection in Bitcoin derivatives, reflecting a resurgence of investor confidence. Heightened US import tariffs on Japan and South Korea have raised recession concerns, yet Bitcoin is seen as a potential hedge. Trading between $107,300 and $110,600 since Wednesday has led to speculation about a possible price surge, especially with anticipated liquidity injections from central banks. Analyst TedPillows noted Bitcoin's lag behind global monetary supply, suggesting potential gains if historical correlations hold. The extension of US tariff deadlines has been interpreted positively, with expectations for Bitcoin to reach $120,000. Although demand for put options surged on Deribit, indicating some bearish sentiment, the put-to-call ratio normalized, favoring call options. Futures data showed a dip in the BTC futures premium, but it rebounded above neutral levels, indicating renewed confidence. Despite economic tensions, Bitcoin's stability above $107,000 and improved derivatives metrics support the case for a rally, contingent on changing investor perceptions. Read more AI-generated news on: https://app.chaingpt.org/news

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