Bitcoin's price surge sparks concerns about sustainability

Bitcoin's recent price surge has been met with cautious optimism from analysts, who note that the rally is partly driven by short covering rather than fresh bullish positioning.

The sharp decline in leverage across Bitcoin markets suggests a broader market reset, as traders scale back their exposure to volatile assets.

Data from CryptoQuant shows that the Estimated Leverage Ratio (ELR) has dropped significantly since February, typically indicating that traders are closing positions or facing forced liquidations.