TLDR
- Bitcoin reached $79,488 before easing to $78,223 as futures activity powered the latest price move.
- CryptoQuant CEO Ki Young Ju said the current Bitcoin rally is driven by derivatives, not strong spot demand.
- On-chain data shows Bitcoin’s 30-day apparent demand metric remains in negative territory.
- Michael Saylor’s firm, Strategy, purchased $255 million in Bitcoin after a $2.54 billion acquisition last week.
- Bitcoin ETFs acquired more than $2.6 billion worth of BTC this month despite weak on-chain demand.
Bitcoin climbed toward two-month highs as derivatives activity powered the latest advance. The asset reached $79,488 before easing to $78,223 during the session. However, CryptoQuant CEO Ki Young Ju said futures markets, not spot demand, drive the current Bitcoin rally.
Bitcoin Rally Fueled by Futures While Spot Demand Stays Weak
Ki Young Ju stated that derivatives traders lead the present move in Bitcoin. He said rising open interest shows traders are increasing leverage across futures markets.
He explained, “This rally is futures-driven,” and he pointed to negative on-chain demand data. CryptoQuant data shows Bitcoin’s 30-day apparent demand metric remains below zero.
Meanwhile, institutional buyers continued acquisitions through direct purchases and exchange-traded funds. Michael Saylor’s firm, Strategy, bought $255 million in Bitcoin after acquiring $2.54 billion last week.
At the same time, Bitcoin ETFs accumulated more than $2.6 billion worth of BTC this month. Yet on-chain metrics did not reflect matching growth in spot-driven demand.
CryptoQuant data showed futures demand in strong positive territory during the same period. However, Ju said bear cycles end only when both spot and futures demand recover together.
He added that current data does not show that alignment. Therefore, the structure behind the Bitcoin rally remains uneven.
Short Squeeze Accelerates Bitcoin Price Surge
On April 23, Bitcoin rose from $76,351 to $79,447 within hours. The move marked a 4.05% increase during that session.
Carmelo Alemán, an on-chain analyst at CryptoQuant, attributed the surge to forced liquidations. He said short traders closed positions rapidly as prices climbed.
Open interest jumped from $24.88 billion to nearly $28 billion during the rally. This rise showed a sharp increase in leveraged futures positions.
Short liquidations exceeded $607.9 million in Bitcoin during that move. Ethereum short liquidations reached $580.9 million in the same period.
Together, short liquidations totaled about $1.19 billion across both assets. In contrast, long liquidations remained just above $111 million combined.
Alemán said the imbalance highlighted strong pressure on bearish traders. As shorts closed, forced buying pushed prices higher.
CryptoQuant data indicated that derivatives activity expanded faster than spot transactions. Therefore, leverage played a central role in the advance.
Ju reiterated that on-chain demand still shows weakness despite price gains. He stated that negative apparent demand contrasts with rising futures exposure.
Bitcoin traded near $78,223 after touching $79,488 earlier in the day. Open interest remained elevated near $28 billion at the latest reading.
The post Bitcoin Rally Builds on Leverage as Spot Demand Lags appeared first on Blockonomi.
Source: https://blockonomi.com/bitcoin-rally-builds-on-leverage-as-spot-demand-lags/