On Tuesday, Bitcoin (BTC) saw a significant increase of 6% in under four hours, largely driven by a ceasefire agreement between the US and Iran, which positively impacted global stock markets. This upswing led to a liquidation event worth $280 million in Bitcoin futures, surprising many traders in the process.
Despite the recent rally, Bitcoin derivatives indicate that maintaining momentum above $80,000 may take longer than expected. Traders are cautious, as US Vice President JD Vance labeled the ceasefire a "fragile truce," which keeps bearish sentiment alive amid potential corrections of around $68,000.
Bitcoin futures open interest grew to 593,930 BTC on Wednesday, marking a 2.5% increase from the previous day. However, the lack of bullish demand is evident, as the annualized premium for Bitcoin futures remains at 3%, below the neutral 4% level.
Recent trends suggest that if the situation in Iran stabilizes, it could lead to reduced inflationary pressures and lower oil prices, which may allow for more expansionary monetary policies. Nonetheless, the Federal Reserve has been hesitant to lower interest rates, despite indications of a weakening job market.