Bitcoin Rally Fueled Primarily by Futures Trading

The current state of the Bitcoin market is a topic of interest among analysts and traders alike. According to Ki Young Ju, CEO of CryptoQuant, the recent price rally has been fueled primarily by futures trading activity.

This assertion is supported by on-chain data, which shows that while open interest in Bitcoin futures continues to grow, visible on-chain spot demand remains in negative territory. Historically, bear markets end only when spot and futures demand recover simultaneously.

Institutional buying has been strong, with significant inflows into spot Bitcoin ETFs and large corporate purchases. However, the underlying spot demand has not turned positive, suggesting that this buying is being offset by selling pressure from long-term holders and miners.

Ki Young Ju emphasized that sustainable rallies require simultaneous strength in both spot and futures markets. A futures-driven recovery without spot support often ends in a correction once leverage is unwound.