Bitcoin Closes at Record $106,830 as Investors Favor Spot ETFs

Bitcoin (BTC) has set a new record for its daily closing price, ending Tuesday's trading session at $106,830. This milestone was achieved as investors directed significant capital into spot exchange-traded funds (ETFs), driven by concerns over the fiscal health of major economies, including the U.S., as reflected in the chaotic price action in bond markets. Analysts have suggested that the deteriorating fiscal debt situation could be beneficial for BTC and other assets like gold.

The Coinbase Bitcoin Premium Index indicated persistent buying pressure from U.S.-based investors, as the price of Bitcoin on Coinbase Pro remained higher than on Binance. With the uptrend continuing, the next critical level to monitor is $110,000. Data from Deribit's BTC options market reveals that dealers or market makers hold a substantial net "negative gamma" exposure at this level. This means that dealers, aiming to maintain a delta-neutral position, may amplify both bearish and bullish moves, potentially accelerating the rally if the price breaks above $110,000. The options market's growth over the past five years has contributed to increased volatility due to dealer hedging activities.

Bitcoin's price has surged, closing a weekly candle above $107,000 for the first time. This increase briefly pushed the price to $107,000 before it eased back to $105,000, marking a 0.50% increase from a local low of $104,480. This bullish trend is fueled by the successful passing of the GENIUS stablecoin act, which was approved with a 66-32 margin. Both retail and institutional investors have been aggressively buying Bitcoin during market corrections, contributing to the upward momentum. The passing of the GENIUS Act has bolstered investor confidence, leading to a 1.3% increase in the overall cryptocurrency market capitalization, which now sits around $3.48 trillion. This buying pressure has helped push Bitcoin prices higher, leading to an uptick in Ethereum and Dogecoin prices as well.

Bitcoin's price is now close to revisiting its all-time high, which could attract significant hype and retail investors. If Bitcoin surpasses $109,000, it could set up a new all-time high, potentially propelling the cryptocurrency market into a longer green phase. This development could also allow altcoins to explode, bringing forth an altseason. Key levels to watch for Bitcoin include $110,000, $115,000, $120,000, and $125,000 to the upside, and $100,000 and $95,000 to the downside. These areas tend to serve as key support and resistance levels, which could influence Bitcoin's price moves.

The bullish sentiment in the cryptocurrency market is not limited to Bitcoin. Ethereum and Dogecoin prices have also surged, with Ethereum trading at $2,542 after a 2% intraday pullback and Dogecoin trading at $0.224 after dropping nearly 3% from the intraday top of $0.230. The overall optimism in the market suggests that the cryptocurrency sector is ready to shoot higher, with Bitcoin leading the charge. The successful passing of the GENIUS Act and the aggressive buying spree from spot investors have created a bullish environment for the cryptocurrency market, with Bitcoin poised to reach new all-time highs.