Bitcoin's Derivatives-Driven Rally Fails to Attract Real Buyers

Bitcoin's recovery has been driven by derivatives, not spot demand, leaving its rally more fragile. The recent $1 billion USDT injection could add fuel to Bitcoin's derivatives market rather than attracting real buyers.

The Crypto Fear & Greed Index held above extreme fear, reviving debate over whether BTC's bear market is nearing its end. However, history suggests the current cycle has yet to reach the length of previous bear markets.

Bitcoin's 30-day cumulative demand rebounded sharply from nearly -500,000 BTC to around -75,000 BTC, driven almost entirely by derivatives. Futures demand surged from roughly -295,000 BTC to slightly positive, while spot demand remains weak at around -78,000 BTC.