- Analyst CryptoQuant noted an imbalance in activity in the Bitcoin futures and spot markets.
- The current combination suggests speculative growth as spot market activity is low.
According to Julio Moreno, head of research at CryptoQuant, Bitcoin’s recent rally has been speculative in nature and fueled by demand for futures, while spot market demand continues to decline.
A chart published by the organization tracks the cumulative 30-day growth in demand for spot and perpetual futures, as well as the BTC price. It shows that leveraged traders are driving the market up, while direct buyers in the spot market remain less active.
The divergence was seen as BTC approached the $80,000 mark after a week of gains of around 4%. BTC price reached the level of $79,500, after which it rolled back to a graphically beautiful $77,777.
CryptoQuant Data
Moreno noted that a similar situation arose in January, when active trading in perpetual futures helped push up Bitcoin to the $98,000 mark. This rise quickly lost momentum due to weak spot accumulation.
In the CryptoQuant chart, the blue bars represent demand for perpetual futures, and the pink bars represent demand for spot futures. In April, demand for futures surged, while spot demand remained below zero.
Against this backdrop, other market data showed improving sentiment as BTC’s rebound continued. Fear and Greed Index The CMC rose 31 points from its April low of 28 to 59, the second-highest level in the last six months.
Additionally, noted strengthening institutional participation. Inflow of funds into ETF BTC volume reached $1,32 billion in March and $1,87 billion in April after four months of outflows. The inflow of capital suggests increased institutional interest, despite recent price fluctuations. At the same time, liquidation data showed greater pressure on bearish positions than on bullish ones.
SoSoValue data
The day before, the volume of short positions in BTC exceeded $183 million, while the volume of long positions was $13,98 million. The following day, the volume of short positions reached $87,53 million, while the volume of long positions was $35,79 million. The dynamics showed that short positions were decreasing as the price of BTC rose.
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