Bitcoin reclaimed $106,000 as the US government shutdown neared an end, with analysts warning of consumption dampening effects from the funding halt. Traders are cautious as weak demand for bullish positions in BTC derivatives persists, reflected in a 4% premium on two-month futures below the neutral 5% threshold. The shutdown’s resolution could boost optimism among Bitcoin traders, but fears of excessive AI valuations and weak consumer earnings weigh on market sentiment. The US Supreme Court’s questioning of import tariff authority adds further risk to the economy. Bitcoin remains susceptible to broader market concerns over US economic weakness, with options skew signaling skepticism and perpetual futures funding rate showing lack of interest from retail traders.

Read more at CoinTelegraph: Bitcoin Short Squeeze To $112K Possible If US Shutdown Ends