365Crypto
Bitcoin hit a new high this week—$109,827—but quickly slipped back. Some thought it might be due to risky futures bets, but the data tells a different story.
No Wild Leverage This Time
Bitcoin futures show a 7% annualized premium. That’s within the normal 5-10% range. In past bull runs, it soared above 30%. This calmer market suggests traders aren’t maxing out leverage.
Futures Premium: The price difference between future contracts and the current spot price. Shows how optimistic traders are.
ETFs Are Doing the Heavy Lifting
Bitcoin spot ETFs in the U.S. brought in $1.37 billion from May 15–20. That’s big. These funds buy real Bitcoin, unlike futures contracts. So this surge looks real—not just financial trickery.
Also, we’re not seeing price premiums on Coinbase anymore. In January, U.S. buyers pushed the price up there. Now, buying is balanced across exchanges. That’s a good sign.
Less Liquidation, More Stability
Bearish traders betting on Bitcoin’s fall only lost $170 million between May 18–21. Compare that to $538 million liquidated in just three days during the last spike. It’s calm out there.
Even the options market looks normal. On May 21, more people bought put options, but nothing dramatic.
Put Options: Contracts that let traders sell an asset at a set price. Buying puts often means expecting a drop.
Fed Policy Boosts Bitcoin’s Case
The U.S. Federal Reserve is still printing money, and bond sales are struggling. That helps Bitcoin. Why? Because when bonds look weak, risky assets like BTC get more love.
If this trend keeps up, Bitcoin could make a serious run past $110,000—without needing the casino-like leverage of the past.
