Bitcoin’s recent price recovery appears primarily driven by leveraged funds rather than organic market demand, signaling potential fragility in the rally.
Analysts note spot trading activity remains notably subdued despite the cryptocurrency’s upward movements, indicating weak participation from core long-term investors.
This pattern suggests the price surge lacks solid foundation from traditional buy-and-hold stakeholders who typically provide market stability.
The dominance of speculative positions has amplified price volatility as traders increasingly rely on leverage to capitalize on momentum moves.
Such conditions create heightened vulnerability to sudden market reversals when leveraged positions rapidly unwind.