Bitcoin Price Rally Raises Concerns About Sustainability

A sharp rally in Bitcoin's price has left analysts questioning its sustainability. According to data from CryptoQuant, the cryptocurrency's price rose about 20% in April, but this was largely due to increased futures trading activity.

The firm noted that spot demand declined during the rally, suggesting weak organic buying interest. This divergence between rising prices and falling spot demand is a red flag for speculative market behavior.

CryptoQuant's Bull Score Index dropped from 50 to 40 in April, even as Bitcoin price increased. The firm stated that this decline signals weakening bullish momentum across market and network indicators.