Bitcoin's Perpetual Futures Driven Price Increase Raises Concerns of Further Declines

Bitcoin's recent price increase has been driven by the growing demand for perpetual futures, according to a report by CryptoQuant.

The analysis found that the divergence between rising prices and falling spot demand is an on-chain signal of a speculative rally rather than a structural one. This pattern is reminiscent of the early stages of the 2022 bear market, where futures demand surged while spot demand remained weak.

As a result, CryptoQuant's Bull Score Index has fallen to 40 from 50 in April, indicating that market conditions are turning bearish and elevating downside pressure on Bitcoin. The report warns that this may lead to further declines if spot demand does not recover.