Bitcoin’s all-time high gains vanished hours later: Here’s why
Key Points on Bitcoin’s Price Action
Price Movement: Bitcoin hit a new all-time high of $124,089 but quickly dropped below $117,500, triggering $227M in bullish leveraged liquidations.
Futures Premium: BTC futures annualized premium stayed around 9%, within the neutral 5–10% range — suggesting no excessive leverage and calm trader sentiment despite the drop.
Options Market: Bitcoin options delta skew is at 3%, showing balanced market sentiment with little fear of a fall below $110,000.
Macroeconomic Factors:
US PPI inflation came in hotter than expected at 3.3%, lowering expectations for aggressive interest rate cuts.
Fed rate cut probability for Jan 2024 dropped to 61% from 67% a week earlier.
US Treasury Secretary Scott Bessent stated there are no plans to expand Bitcoin purchases for the Strategic Reserve or convert Treasury gold proceeds into BTC, countering market expectations from Trump’s March Executive Order.
US government debt has surpassed $37 trillion.
Market Sentiment:
Equities recovered post-inflation data, suggesting BTC’s drop may be more profit-taking than panic selling.
Traders appear cautious, with limited confidence in a breakout toward $150,000 in the near term.
Long-term Outlook: Bitcoin is still positioned for potential gains in 2025, aided by central bank balance sheet expansions, but short-term enthusiasm for a decisive break above $120K remains muted.
