Bitcoin hits new highs in the absence of ‘unhealthy’ leverage use — Will the rally continue?

Date: 2025-05-21

Key takeaways:Spot Bitcoin ETF inflows and low leverage suggest the BTC rally has room to grow.US Federal Reserve liquidity and weak bond sales support a Bitcoin push beyond $110,000.Bitcoin (BTC) was unable to sustain its bullish momentum after reaching a new all-time high of $109,827 on May 21, which led traders to question whether derivatives markets mainly drove the rally. From a broad perspective, the $77 billion in Bitcoin futures open interest has undoubtedly played a role. However, a closer look at the data shows a more positive outlook for further price gains.Bitcoin 2-month futures annualized premium. Source: Laevitas.chThe current 7% annualized Bitcoin futures premium is well within the neutral range of 5% to 10%, which has been ...

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