Futures-Driven Bitcoin Rally Fails to Boost On-Chain Demand

CryptoQuant CEO Ki Young Ju has shed light on the current state of the Bitcoin market, indicating that its recent rally is largely driven by futures markets. In his analysis, Ju notes that open interest in futures contracts is increasing, while on-chain demand remains in a net decline despite inflows into exchange-traded funds and purchases made by prominent investors such as Michael Saylor.

On-chain 'apparent demand' is a metric used to gauge underlying demand trends, reflecting factors like new capital entering the market and increases in held assets. Ju emphasizes that bear markets have historically ended when spot and futures demand recover simultaneously, suggesting that a rebound in spot-based demand could be crucial for determining the next trend shift in the market.