BTC rally sustained by leverage, not spot demand, signaling weak confidence

Bitcoin's ongoing rally is being sustained by leverage demand, indicating a continued lack of market confidence, CoinDesk reported. The outlet noted that last month, BTC's price increase was driven by futures demand while spot demand declined. This divergence has historically created a fragile environment where price rallies are prone to reversal. While there is still potential for further gains, the market could react sensitively to a slowdown in capital inflows or a shift in positioning. CoinDesk pointed out that in the past, similar conditions have more often led to sharp downturns rather than sustained upward trends.