BTC futures leverage driving latest rally: analyst

Bitcoin is nearing the on-chain threshold for entering a bull market, but the recent price rise has been driven more by futures leverage than spot demand, CryptoQuant analyst Axel Adler Jr. said. Over the past 24 hours, BTC rose 3.9% while open interest increased by about 11,200 BTC, or 3.4%, over the same period, Adler said. During a six-hour stretch, open interest temporarily jumped by 15,200 BTC, and the leverage squeeze index climbed to 63, indicating an increase in long positions. Adler added that if the rally had been driven simply by short covering, open interest would normally have declined, but the sharp increase in OI suggests fresh leveraged futures positions were the main force behind the move.