Top Bitcoin traders enter leveraged longs near all-time high — $80,000 ahead? #HotTrends
Demand for BTC futures soars to $35 billion, but options markets show no signs of excessive optimism.
Bitcoin hit an all-time high of $73,650 on March 13, marking a 44% gain in 16 days. The surge reflects the increasing demand for spot Bitcoin exchange-traded funds (ETFs) listed in the United States, which saw a record $1 billion in net inflows on March 12. Traders are questioning whether Bitcoin can reach $80,000, given that professional traders are continuing to add bullish leveraged positions.
Is Bitcoin being used as an inflationary hedge?
is being utilized as a hedge against U.S. monetary policy, especially following the 3.2% increase in the Consumer Price Index (CPI) in February compared with the previous year. Consequently, this puts pressure on the U.S. Federal Reserve to refrain from cutting interest rates further, adding to the risk of an economic recession, as companies have fewer incentives to expand and hire.
Conversely, if the pessimistic scenario materializes, with inflation accelerating and the Fed compelled to raise rates further, this could prove detrimental for risk-on assets, including Bitcoin. During periods of uncertainty, investors tend to seek refuge in short-term U.S. Treasury and cash positions, even if they have strong long-term convictions in the stock market or real estate.
Therefore, whether Bitcoin’s current bull run has the potential to surpass $80,000 hinges on the adoption of spot ETF instruments as a “store of value” and a potential shift in Bitcoin’s risk assessment. Before 2024, Bitcoin was not easily accessible to the majority of mutual funds and wealth managers. Additionally, regulatory uncertainty and its classification as a commodity were major concerns, but this changed after the approval of the U.S. spot Bitcoin ETF on Jan. 11.
