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BTC derivatives metrics suggest $70K is here to stay
The reduced use of leverage in Bitcoin futures greatly reduces the odds of cascading liquidations in the event of a BTC price pullback.
Since March 25, Bitcoin has struggled to maintain its value above the $71,000 mark, a trend that some may see as a sign of bearish momentum. However, the outlook for the BTC derivatives market reveals a more stable environment, as the previous atmosphere of unbridled optimism has noticeably diminished.

Resilient U.S. inflation strengthens the bullish case for Bitcoin
Currently, Bitcoin finds it difficult to stay above the $70,000 threshold. However, some analysts believe that recent U.S. inflation figures, which show unexpected resilience, and the U.S. government's unsustainable fiscal trajectory create an ideal backdrop for investing in scarce assets.
Market analyst, MatticusBTC, attributes the rise in inflation to the significant monetary expansion orchestrated by the US Federal Reserve during the 2020-2021 period. As a result, the Federal Reserve may have no choice but to keep interest rates elevated. However, this strategy has its limitations, especially considering the interest burden of U.S. government debt.

Higher interest rates pose problems for both businesses and households, especially when they have to refinance or take out new loans. This tends to reduce investors' appetite for risky assets, slowing economic growth. However, in 2024, investors began looking for alternatives to invest their money apart from U.S. Treasuries.

Over the past 30 days, both gold and Bitcoin have hit all-time highs, while 2-year U.S. government bonds fell to a nine-month low on April 9. This move suggests a lack of investor appetite for a fixed yield of 4.7% as a hedge against inflation.

The Stock Market Could Dictate Bitcoin's Short-Term Performance
Bitcoin critics suggest that the S&P 500 index's recent drop from its all-time high of 5,265 on March 28 may signal an upcoming economic downturn. Given the strong correlation between Bitcoin and the stock market, which has been above 80% in the past month, it is possible that the price of Bitcoin will initially fall if the problems in the stock market continue.
Source: Cointelegraph