Bitcoin Surpasses $77,000: Are Bulls Returning to the Crypto Market
On Monday, following a recovery in global stock markets, the price of Bitcoin (BTC) returned to the $77,000 level. Brent crude oil prices fell to a five-week low after U.S. President Donald Trump announced that negotiations with Iran to reopen the Strait of Hormuz are progressing positively. This is setting the stage for Bitcoin's price to rise to $82,000. This is reported by Cointelegraph.com reports.
Global stock exchanges started the week on a high note: Japan's Nikkei 225 index rose by 2.9%, and France's CAC 40 index grew by 1.8%. The decline in oil prices reduced inflationary pressure, causing the yield on Eurozone 5-year government bonds to drop to 2.64%. The easing of geopolitical risks encouraged investors to redirect cash back into stocks and bonds.
However, despite the overall decrease in risk, professional Bitcoin traders remain cautious. Bitcoin 3-month futures are trading at a 2% annualized premium, indicating low demand for leveraged positions. In a typically neutral market, this figure ranges from 5% to 10%. Nevertheless, if the $74,000 support level holds, low leverage is considered positive for the market.
The outflow of $2.66 billion from U.S.-listed spot Bitcoin ETFs since May 7 has also affected investor confidence. Although this is less than 3% of total assets under management, it indicates a slight cooling in institutional investor interest. Additionally, Strategy's temporary suspension of Bitcoin purchases to buy back its own bonds has caused market concerns.
Currently, Strategy holds 843,738 BTC in reserves, with the company focusing on improving its $8.7 billion debt profile. While this may slow Bitcoin purchases in the short term, it is expected to be beneficial for shareholders by ensuring long-term financial stability. The appointment of Kevin Warsh, who has a crypto-friendly approach, as Fed Chair could also influence future market dynamics.
