Bitcoin surged to a weekly high of $68,600, recovering sharply from earlier lows near $62,400. This rebound coincides with renewed inflows into spot Bitcoin exchange-traded funds and a more stable macroeconomic outlook following recent policy signals that bolstered broader risk markets.
Market sentiment improved as economic data showed falling inflation. The US spot Bitcoin ETFs recorded significant net inflows, reversing a trend of redemptions. Major funds like Fidelity and BlackRock's iShares Bitcoin Trust saw substantial additions.
Futures data indicates that Bitcoin's open interest has stabilized, suggesting that excessive leveraged positions were reduced during recent market volatility. Funding rates remain neutral, signaling that traders are not aggressively betting on further price increases. This environment, combined with increased spot buying, appears to be driving the current rally without excessive leverage buildup.
Analysis of derivatives markets shows dealers are hedging in a way that could smooth out volatility. Options data suggests positive gamma, a condition where dealers buy on price dips and sell on rallies, potentially moderating sharp price movements. Order book analysis also revealed strong buying interest around the $60,000-$63,000 level, which has supported the recent upside expansion. However, sustained selling pressure at current levels could signal a slowdown in buying momentum.