"Bitcoin temporarily surpasses $109k on global M2 increase… Derivatives market remains 'cautious'"

The price of Bitcoin (BTC) recently surged past the $109,000 (USD) mark, but analysis suggests that derivatives traders are still exhibiting caution.

On the 2nd (local time), according to Cointelegraph, Bitcoin broke through the $105,200 support level on this day and soared to $109,688. This is interpreted as being influenced by the recent increase in the Eurozone's money supply (M2) and the weaker-than-expected US ADP employment data released the previous day.

Typically, an increase in M2 boosts liquidity within the financial system, increases available investment funds, and tends to stimulate demand for risk assets such as Bitcoin. In addition, the US ADP private employment index for June, released the day before, decreased by 33,000 compared to the previous month, somewhat easing inflation concerns.

On the other hand, the Bitcoin futures premium remains below the 5% 'neutral' range, indicating that investors are still taking a cautious stance. The Bitcoin futures premium refers to the difference between the spot price of Bitcoin and the futures price of Bitcoin; historically, a continued uptrend has been seen when this indicator entered the 'bullish' zone of above 10%.

In addition, the 1-month Bitcoin option put-call delta skew is currently at 0%. Skew refers to the difference in implied volatility between call and put options. A positive skew means call options are favored over put options, while a neutral or near-zero skew indicates a balanced demand for both bullish and bearish bets.

Meanwhile, as of 14:36 on this day, Bitcoin is trading at $109,248 on the Binance Tether (USDT) market, up 2.56% from the previous day.