Bitcoin (BTC) Price Sets New All-Time High Daily Closing Price at $106,830

Although bitcoin (BTC) can be traded 24/7 its candles open and close daily similar to foreign exchange markets. The latest data from TradingView shows Tuesday's candle ended (UTC) at $106,830

Bitcoin (BTC) rose another 2.5% in the 24 hours to 3 p.m. EDT on Tuesday, extending the gains that began after the U.S. inflation reading on Tuesday.

The world’s largest cryptocurrency was trading up 105% in 2024, with the latest rally taking BTC to new 18-month highs.

The gains came as investors poured money into the spot exchange-traded funds (ETFs) amid chaotic price action in bond markets that suggested heightened concerns about the fiscal health of major economies, including the U.S.

Analysts told CoinDesk last week that the worsening fiscal debt situation could bode well for BTC and other assets such as gold.

Here are some of the key takeaways from the crypto market on Tuesday:

* BTC, ETH prices rose as bond yields remained elevated.

* The Coinbase Bitcoin Premium Index remained positive, indicating persistent buying pressure from the U.S.-based investors.

* Next key level to watch is $110,000 as Deribit options traders have a large net “negative gamma” exposure at the zone.

What traders are saying

“The worsening fiscal debt situation could bode well for Bitcoin (BTC) and other assets such as gold, according to analysts.

In a conversation with Blockworks last week, analysts at ING noted the chaotic price action in the U.S. bond market on Wednesday, which saw a massive sell-off in response to a report showing a larger-than-expected rise in the federal deficit this year.

Analysts at the Dutch multinational bank said the move signaled heightened concerns among investors about the fiscal health of major economies, and in particular, the U.S.

“The U.S. bond market had a wild time of it on Wednesday, as Treasury yields sold off sharply following the latest government data showing that the federal deficit will be bigger this year than economists had expected, ” ING strategists said in a statement.

The development came after the U.S. Treasury revised its projections for 2023, now forecasting a $1.5 trillion deficit, up from the $1.3 trillion deficit estimated in March. Economists had expected a $1.4 trillion deficit.

The projections also showed that the government debt will rise to $32.7 trillion by the end of 2023, higher than the $31.9 trillion projection made in March. Economists had expected $32 trillion.

The adjustment to the federal deficit and government debt figures came after the Biden administration announced plans to cut spending in an effort to avert a default on U.S. debt payments.

After months of negotiations with Republican lawmakers, President Biden signed a measure to suspend the government's borrowing limit until January 2025 and cut spending by nearly $1.3 trillion over the next decade.

The move came after months of warnings from the Treasury Department that the government would be unable to pay its bills by early June if no agreement was reached to raise the borrowing limit.

The U.S. government reached the $31.4 trillion debt ceiling in January, setting the stage for months of negotiations between the White House and lawmakers to increase the borrowing limit and avert a default.

The move came as the Biden administration announced plans to cut spending in an effort to avert a default on U.S. debt.

After months of negotiations with Republican lawmakers, President Biden signed a measure to suspend the government's borrowing limit until January 2025 and cut spending by nearly $1.3 trillion over the next decade.

The move came after months of warnings from the Treasury Department that the government would be unable to pay its bills by early June if no agreement was reached to raise the borrowing limit.

The U.S. government reached the $31.4 trillion debt ceiling in January, setting the stage for months of negotiations between the White House and lawmakers to increase the borrowing limit and avert a default.

Coinbase Bitcoin Premium Index remains in positive territory

The Coinbase (NASDAQ:COIN) Bitcoin Premium Index, which measures the percentage difference between the price of Bitcoin on Coinbase Pro (USD pair) and the price on Binance (USDT trading pair), remained in positive territory on Tuesday.

Despite a slight decrease from the previous day, the index remained above the 0% mark, which typically signals that there is a premium for BTC on U.S.-based exchanges.

This premium could be attributed to several factors, including persistent buying pressure from U.S. traders, smaller liquidity on U.S. exchanges compared to international exchanges, and a preference among U.S. traders for fiat currency pairs.

However, the magnitude of the premium has varied over time, sometimes reaching significant levels during periods of heightened volatility or macroeconomic uncertainty.

For instance, during the early stages of the COVID-19 pandemic in 2020, the Coinbase Bitcoin Premium Index soared above