Why has the price of bitcoin skyrocketed? Here's an overview of the latest factors.

Why has the price of bitcoin skyrocketed? Here's an overview of the latest factors.

Bitcoin is enjoying strong growth today, with its price surpassing the $109,000 mark. In the last 24 hours, it has seen an increase of more than 3.6%, taking it to its current value of over $109,168. Since hitting a low of around USD 105,400 on June 9, bitcoin has climbed to an intraday high of USD 110,532. What is behind this significant rise?

Optimism from the US-China trade talks

The main driver is the renewed interest in risk assets, which is linked to hopes for a positive outcome of the ongoing trade negotiations between the United States and China. These talks in London are hinting at a possible de-escalation of trade tensions and an easing of tariffs, boosting investor confidence in the global economy.

Historically, positive developments in trade often lead to an increase in risk appetite and capital flowing into assets such as bitcoin. For example, in May this year, when the US and China concluded a 90-day trade agreement, the price of BTC rose to new all-time highs. Such events have the potential to reduce fears of inflationary pressures and tighter Federal Reserve policy, further fuelling interest in cryptocurrencies.

Markets and rate expectations

Currently, the market clearly rules out the possibility of an interest rate cut at the upcoming FOMC meeting on June 18. According to the FedWatch tool, the probability that rates will remain unchanged is almost certain at 99.9%. This fact reinforces stability and confidence in the financial markets, including the cryptocurrency sector.

Growing interest in the futures market

Another reason for the growth is the significant increase in open long positions (OI) in the futures market. Data from CoinGlass shows that total open interest in Bitcoin has risen to a two-week high of $77 billion. Over the past 24 hours, OI has seen an 8% increase, indicating increased demand for leveraged positions.

CME trading activity and short liquidation

Bitcoin futures on the CME reached a 14-day high of nearly 152,000 BTC on June 10, equivalent to a value of approximately USD 16.6 billion. The volume of derivatives trades increased by more than 112% to USD 114.3 billion over the past day, underscoring the increased activity and investor interest.

The bullish sentiment is further supported by significant liquidation of bearish positions. Over the past 24 hours, over $195 million worth of short positions have been wiped off the market, while long positions have seen only minimal liquidation. This points to persistent bullish sentiment and upward pressure on the price.

Technical Indicators and Outlook

On a technical level, some indicators suggest that growth may continue. The bull flag formation on the daily chart suggests that bitcoin could be heading towards a target of around $158,000 once this patterna is broken. In addition, the Relative Strength Index (RSI) is at 61, which is still within room for further growth without the market becoming overbought.

According to analysis, a break of the "cup and handle" formation could open the way to prices around USD 140,000, which would confirm the strong bullish sentiment in the market.

Conclusion

The current rise in the bitcoin price is the result of a combination of positive macroeconomic factors, increasing interest in the futures market and technical signals. Trade negotiations between the US and China, along with clear expectations on tariffs, are creating a favorable environment for the digital currency, which appears to be on track for further growth.

*This is not an investment recommendation.

Coingarage team