Bitcoin rally to $120K possible as investor confidence grows amid global economic concerns

Bitcoin derivatives show reduced demand for downside protection, indicating renewed investor confidence amid US import tariff hikes on Japan and South Korea. Bitcoin trades within a range of $107,300 to $110,600, fueling speculation of a potential price rally. Analysts predict a Bitcoin bull run with fresh liquidity injections from major central banks. Market participants eye $120,000 target as Bitcoin lags behind global monetary supply chart. US import tariff deadlines extended, leading to optimism and investor confidence in avoiding trade war. Deribit BTC options see surge in demand for put options, pushing put-to-call ratio to highest level in over a year. On Monday, indicator reverts to 0.8, favoring call options over put options. Futures data shows increased bearish sentiment over the weekend as BTC futures premium dips to 3.5% on Saturday. Premium rises above 5% neutral mark by Monday despite BTC trading below $108,000. Bitcoin derivatives metrics reflect improving sentiment despite broader recession fears. Shift in demand signals renewed investor confidence, particularly notable as S&P 500 index drops 0.9% on Monday. Trump’s 25% tariff hike on imports from Japan and South Korea deepens economic recession concerns. US 10-year Treasury yield climbs to highest level in two weeks as investors seek greater returns. Bitcoin remains above $107,000 with improved derivatives indicators, supporting potential rally to $120,000. Investor perception of Bitcoin as a hedge and alternative financial system will determine if rally occurs.

Read more at Cointelegraph: Bitcoin Rally to $120K Possible After Bears Unwind Positions