Bitcoin rally lacks conviction amid low volume, analyst says

Bitcoin's recent rally toward $80,000 may not be sustainable, as it has been accompanied by a sharp decline in trading volume and persistently negative funding rates in the futures market, according to a report from 10x Research founder Markus Thielen cited by CoinDesk. Thielen argued that these factors suggest the rally was likely driven by spot buying or short covering, rather than by investors with long-term conviction building leveraged positions. He attributed the negative funding rates, which have occurred despite Bitcoin posting its largest monthly gain since April 2025, to a structural shift in the market. This change is characterized by institutional hedging activity, such as hedge funds shorting futures to manage their positions, rather than by retail investor sentiment.