Bitcoin's Rally Fueled by Futures, Not Spot Buying, Says CryptoQuant Report

CryptoQuant has released a report highlighting concerns over Bitcoin's recent surge. According to the analysis, the current demand pattern mirrors early 2022, indicating potential downside pressure. The April rally was driven by perpetual futures rather than strong spot buying, which may weaken its price stability.

The report also notes that geopolitical developments that initially bolstered risk assets like Bitcoin could reverse, adding to downside risks. Market participants are viewing the potential downside as significant, with pricing in the Bitcoin market consistent with a NO outcome for reaching $86,000 by May 2. The Ethereum market pricing, however, indicates strong confidence in maintaining levels above $1,900.