Key takeaways:

BTC hit $97,900 due to soaring institutional investor demand, but futures pricing shows traders aren’t confident in a sustained rally.

Macroeconomic risks and global trade tensions cap bullish sentiment despite $3.6 billion in spot BTC ETF inflows.

BTC options lean bullish, suggesting big players expect upside, but their caution keeps leverage use low.

Bitcoin (BTC) broke out of a tight trading range between $93,000 and $95,600 on May 1, following six days of limited movement. Despite reaching its highest price in ten weeks at $97,930, sentiment remains neutral according to BTC derivatives indicators. This price action has occurred alongside significant net inflows into US spot exchange-traded Bitcoin funds (ETFs).

Some of the disappointment among traders can be attributed to the ongoing global tariff dispute, which is beginning to affect macroeconomic data. Bitcoin traders are concerned that, despite growing interest from institutional investors, fears of an economic recession could limit price performance. This concern reduces the likelihood of BTC reaching $110,000 or higher in 2025.

Bitcoin 2-month futures annualized premium. Source: Laevitas.ch

The annualized premium for Bitcoin’s two-month futures has remained between 6% and 7% over the past week, staying within the neutral range of 5% to 10%. Compared to January, when Bitcoin was trading near $95,000 and the futures premium was above 10%, traders’ sentiment has weakened. This data suggests there is less optimism, or at least less conviction, in further price gains toward $100,000 and above.

Gold’s performance outshone Bitcoin’s modest gains

Some market participants point to gold’s 20% rally, from $2,680 to $3,220, as a source of concern. Although Bitcoin recently surpassed silver’s $1.8 trillion market capitalization to become the seventh largest global tradable asset, gold’s surge to a massive $21.7 trillion valuation has overshadowed this achievement. Investors worry that Bitcoin’s strong correlation with the stock market has diminished the appeal of its “digital gold” narrative.

Bitcoin spot US-listed ETFs daily net flows, USD. Source: CoinGlass

There is also a possibility that the $3.6 billion in net inflows to US spot ETFs over the past two weeks are being driven by delta-neutral strategies. In this scenario, the flows reflect Bitcoin holders moving to listed products or using derivatives for hedging. If so, the direct impact on price would be limited, which is consistent with Bitcoin’s modest 5% gain during this period.

To determine whether professional traders are comfortable with Bitcoin around $97,500, it is helpful to examine the BTC options market.

Bitcoin 1-month options 25% delta skew (put-call) at Deribit. Source: Laevitas.ch

The BTC options 25% delta skew metric is currently near its lowest level since Feb. 15, indicating that whales and market makers are assigning higher odds to further upside from here. This marks a sharp reversal from three weeks ago, when put (sell) options traded at a premium.

Related: Bitcoin unsure as recession looms, US-China tariff talks kick off

Bitcoin derivatives’ resilience favors further BTC price gains

Overall, Bitcoin derivatives indicate moderate optimism. Traders generally expect further price gains, but bulls are refraining from using leverage. Some might argue that this creates the ideal conditions for a surprise rally, especially since the retest of $74,500 on April 9 did not significantly affect BTC derivatives.

The most important factor influencing Bitcoin’s performance remains the commercial relationship between the US and China. As long as the trade war continues, Bitcoin is likely to continue tracking the S&P 500 movements. While this environment may prevent Bitcoin from reaching a new all-time high in the near term, BTC derivatives are currently leaning slightly in favor of the bulls.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Senator Cynthia Lummis and at least one other Republican in Congress are reportedly critical of US President Donald Trump for offering the top holders of his memecoin a dinner and White House tour.

According to a May 2 CNBC report, Lummis said the idea that the US president was offering exclusive access to himself and the White House for people willing to pay for it “gives [her] pause.” She wasn’t the only member of the Republican Party to be critical of Trump’s memecoin perks, announced on April 23, roughly three months after the then-president-elect launched the TRUMP token.  

“I don’t think it would be appropriate for me to charge people to come into the Capitol and take a tour,” said Republican Senator Lisa Murkowski, according to NBC News.

Despite Lummis’ reported “pause” over the president’s actions, on May 2, she posted a video to X of herself speaking on the Senate floor, saying she was “particularly pleased” by Trump’s support of legislation to establish a strategic Bitcoin (BTC) reserve in the United States. The Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide, or BITCOIN, Act would seemingly codify Trump’s executive order to create a national crypto reserve.

Related: House Democrats want ethics probe on Trump over crypto projects

The launch of the TRUMP coin on Jan. 17 was met with outrage from many lawmakers and figures in the crypto industry, who pointed to potential conflicts of interest and implications of allowing foreign actors to channel funds directly to Trump. The criticism continued after Trump announced that a group of the top memecoin holders would have the opportunity to apply for a White House tour and dinner.

 “Trump once claimed he is so rich he cannot be bought,” said Craig Holman, a government ethics expert with the consumer advocacy organization Public Citizen. “But his obsession with money means he apparently can be bought for a meme.”

Calls for impeachment over ties to crypto

Georgia Senator Jon Ossoff, a Democrat, called for Trump’s impeachment during an April 25 town hall, claiming the memecoin dinner represented “selling access for what are effectively payments directly to him.” During his first term, Trump was impeached twice in the House of Representatives but acquitted after the Senate votes fell short of the two-thirds majority required for conviction.

At the time of publication, it was unclear who, if any, of the memecoin holders would attend the May 22 dinner with Trump. Usernames from the TRUMP leaderboard have led to speculation that staunch supporters like Tron founder Justin Sun and Tesla CEO Elon Musk could be among the attendees. As of May 2, neither the individuals nor the companies have made any formal announcements.

Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions

Merchants in Cannes, France, the site of the international Cannes Film Festival, are set to begin accepting crypto payments by summer this year in an effort to attract clientele with high disposable income by modernizing the city’s commercial payment ecosystem.

According to Artem Shaginyan, founder and head of strategy of Web3 payment company Lunu Pay, the Cannes municipal government is aiming for a 90% adoption rate among local merchants. The executive also told Cointelegraph:

“This is a big signal. When a city like Cannes, known globally for culture and commerce, starts integrating crypto at scale, it shows that Web3 payments aren’t just a niche thing anymore. It’s about proving that crypto can work in everyday settings, not just online or in theory.”

In February, Cannes Mayor David Lisnard announced a crypto payment integration training session for business owners and professionals to promote the widespread acceptance of crypto payments in the city.

The Rue d’Antibes, Canne’s shopping and commercial district. Source: City of Cannes

Canne’s shift toward embracing cryptocurrencies reflects the broader trend of crypto adoption by city, state, and federal governments as these institutions seek to remain competitive on the global stage.

Related: Panama’s capital to accept crypto for taxes, municipal fees

Ahead of the curve? Other jurisdictions modernize with crypto

In December 2023, the Swiss city of Lugano started accepting Bitcoin (BTC) and stablecoin payments for taxes and municipal fees as part of the city’s broader initiative to become a global crypto hub.

Governor Jared Polis of the US state of Colorado directed the state’s Department of Revenue to begin accepting crypto tax payments in September 2022.

The Canadian city of Vancouver passed a motion in December 2024 to make the jurisdiction a “Bitcoin-friendly city” by exploring integrating BTC into the city’s financial system and potentially adopting a Bitcoin treasury strategy.

More recently, in April 2025, the capital city of Panama announced that taxes and municipal fees could now be paid in crypto, including Bitcoin, Ether (ETH), Circle’s US-dollar stablecoin (USDC), and Tether’s USDt (USDT) token.

Panama City mayor Mayer Mizrachi suggested the move would modernize the city and bring increased investment as well as global recognition.

Magazine: Crypto City Guide to Seattle: Site of CZ’s downfall and pot crypto vendors