Over the past 24 hours, Bitcoin has set new all-time highs again, nearing $119,000. Analysts have noted that in addition to institutional demand and whale activities, another group of investors has significantly influenced this increase.
Influence of Leveraged Traders on BTC Market
According to the insights from the market firm Glassnode, demand from leveraged traders is playing a more significant role in this rally than that of spot investors. The cumulative volume delta (CVD) for Bitcoin has been declining recently, while the futures CVD has recorded frequent buy-side spikes, indicating aggressive buying by futures traders.
No Signs of Overheating in Bitcoin Market
Glassnode's analysis suggests that the Bitcoin market is not showing signs of overheating at this time, allowing for potential further growth. Metrics such as Unspent Transaction Outputs (UTXO) and Short-Term Holder Spent Output Profit Ratio (SOPR) indicate that investors are cautiously optimistic and not rushing to sell their assets.
Overview of Current Market Situation
The market remains steady, with an increase in open interest and long positions dominating. This comes after shorts have been liquidated close to $1 billion. The combination of this rising open interest with a lack of confirmation from spot investors could indicate a potentially fragile market structure.
In conclusion, the role of leveraged traders in the current Bitcoin rally is becoming increasingly evident. However, for sustainable growth, it will be essential to see a return in interest from spot investors.
