The Bitcoin market has been experiencing a significant price surge in recent times, but beneath the surface, there are signs of underlying fragility. According to an analysis by CryptoQuant CEO Ki Young Ju, the current rally is being driven primarily by futures trading, rather than actual spot demand.
This divergence raises concerns about the sustainability of the rally, with experts warning that it may be prone to sharp corrections. The Apparent Demand indicator, which measures real-world buying pressure, remains in negative territory, suggesting weak demand.
Historical data shows that bear markets only end when both spot and futures demand recover simultaneously. This means that for a sustained uptrend, spot demand needs to pick up, but the current situation suggests otherwise.