Bitcoin Rally Fueled by Derivatives Demand, Potentially Priced for Correction

CryptoQuant's head of research has highlighted that Bitcoin's recent price gains are primarily driven by perpetual futures demand rather than spot market activity.

This trend is reminiscent of January's peak near $98,000, where futures-market demand initially propelled the advance but ultimately gave way to a correction due to inadequate spot support.

The continued decline in spot market demand could trigger a price pullback as traders take profits, increasing downside pressure on Bitcoin's price.