DWF Labs says recent BTC rally has been driven by spot demand

Bitcoin’s recent rally has been driven by spot demand rather than leverage, crypto market maker DWF Labs said on its official X account. DWF Labs said the latest BTC gains reflected a spot-led move, with open interest in the BTC futures market falling to 669,600 BTC from 762,200 BTC since mid-August, when the sharp upswing began. Inflows through spot ETFs also continued, it added. Spot BTC and ETH ETFs drew a combined $1.2 billion last week, marking a third straight week of inflows above $1 billion, the first such stretch since July last year. DWF Labs also said renewed tensions between the U.S. and Iran were pushing oil prices higher, while market expectations for U.S. monetary policy were tilting toward rate hikes. This week’s U.S. Producer Price Index and Consumer Price Index releases could be key variables, DWF Labs added.