Bitcoin is hovering around $110,000, but investment institutions continue to buy in.

Bitcoin investor sentiment improved on May 26 after U.S. President Donald Trump postponed the 50% import tariff on the European Union.

The European stock market reacted positively to this development, but Bitcoin could not maintain the level of $110,000, causing traders to question whether the leading asset can continue to set new ATHs.

Even if Bitcoin returns to the $105,000 mark, institutional interest is still increasing, and the strong derivatives market shows that traders are not over-leveraging or worrying about the possibility of a correction.

The annualized base yield of the 2-month Bitcoin futures contract | Source: laevitas.chThe demand for leveraged Long Bitcoin positions has increased, as evidenced by the premium on BTC futures reaching 8% on May 26. Although it only rose slightly from the previous day's 6.5%, this figure still remains within the neutral range of 5% to 10%.

In December 2024, the premium fee for Bitcoin futures soared to 20% as BTC surpassed the $100,000 mark for the first time.

Will Nvidia's earnings report and US economic data drive Bitcoin prices?

The EU's decision to postpone the import tax until July 9 by President Trump has alleviated some of the market's uncertainties, but the economic consequences of the ongoing trade conflict have yet to become clear.

The risk appetite of investors currently depends in part on Nvidia's earnings report on May 28, (NVDA), and this may explain why Bitcoin has been unable to surpass its previous peak.

The Bitcoin options market is signaling a higher likelihood of price increases, indicating that whales and market makers remain confident, even as BTC is trading 2.6% lower than its record high of $111,957.

! 30-day delta deviation of Bitcoin options (put-call) on Deribit | Source: laevitas.ch The 6% delta deviation of the Bitcoin options contract indicates that the (put) put option is being traded at a discount, which is typical of a bull market. Near-zero indices reflect the need for a balance between (call) and (put) put options, a trend observed on May 25.

The continuous demand for BTC accumulation by investment institutions is gradually changing the perception of risk among the largest investment firms in the world.

Michael Saylor's Strategy company purchased 427 million USD worth of Bitcoin from May 19 to May 25, at an average price of $106,237. Meanwhile, Bitcoin spot ETF funds saw an additional 2.75 billion USD in inflows during the same period.

During JPMorgan's annual investor day on May 19, CEO Jamie Dimon announced that the bank would allow customers to buy Bitcoin spot ETFs.

Although this move does not include custodial rights or official recommendations regarding crypto, it opens the door for indirect exposure to Bitcoin as this bank manages $6 trillion in customer deposits.

The U.S. market closed on May 26 to commemorate Memorial Day. Therefore, any optimism stemming from the postponement of U.S.-EU tariffs may be tempered by concerns surrounding U.S. government debt and the threat of a potential economic recession.

The recent 5.1% decline in MBA mortgage applications for the week ending May 23 has prompted traders to adopt a more cautious stance.

Although the figures in the Bitcoin derivatives market are still healthy, upcoming economic data will be very important for market sentiment. Investors are closely watching the Richmond Fed manufacturing index to be released on May 28, followed by the PCE inflation data on May 30. These indicators are likely to affect risk appetite and the opportunity for Bitcoin to surpass the $112,000 mark in the short term.

Vincent