Trade Talks and Futures Fuel the Rally 

The rally was supported by positive sentiment surrounding ongoing trade talks between the U.S. and China in London. Expectations of reduced tariffs hold the potential to ease global trade tensions. Such developments boost capital flows into riskier assets, positively impacting assets like Bitcoin. A 90-day temporary trade agreement between the U.S. and China in May similarly drove BTC prices upward. 

On the other hand, markets are not anticipating a rate cut at the FOMC meeting on June 18. According to the FedWatch tool, the probability of interest rates remaining unchanged is 99.9%. Therefore, the likelihood of a rate cut is largely dismissed. Positive trade outcomes could offset inflation pressures from upcoming CPI data, potentially reducing concerns about tighter Fed policies impacting crypto markets. 

Futures Market Sees Strong Interest: Open Interest Hits Record High 

Bitcoin’s climb past $110,000 was driven by growing investor interest in the futures market. According to CoinGlass data, total open interest (OI) reached $77 billion on June 10, marking the highest level in the past two weeks. This increase highlights strong demand for long BTC positions. 

Over the past 24 hours, BTC open interest surged by 8%, signaling a shift toward leveraged trading. On the same day, the CME Bitcoin futures market hit a record with 151,915 BTC in open interest, valued at $16.6 billion. Derivatives trading volume also saw significant growth, rising 112% to $114.3 billion in the last 24 hours. This indicates strong market-wide support for the upward momentum. 

Liquidations of short BTC positions further reinforced the price increase. As of June 10, $195 million in short positions were liquidated, while long position liquidations amounted to only $9.3 million. These figures underscore the strong bullish momentum in the market. 

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