Bitcoin's recent surge above $67,000 follows a ceasefire agreement between the United States and Iran, which has created optimism in the market. However, traders are expressing skepticism, as indicated by a low 2% futures basis and a high premium on put options, suggesting caution among investors.
On Friday, institutional interest was reflected in $86 million of inflows into spot Bitcoin exchange-traded funds (ETFs), although this is overshadowed by a substantial $730 million in net outflows since early June. The futures market has also shown a lack of demand for bullish positions, with the annualized premium remaining below the neutral threshold for over three months.
Despite Bitcoin's daily increase of 4%, which resulted in approximately $210 million in liquidations for short sellers, uncertainty looms due to the absence of a definitive deadline for operational details surrounding the peace deal. The upcoming interim agreement is expected this Friday, yet many traders remain hesitant amidst lingering doubts.