Bitcoin's recent price surge in April was primarily driven by speculation in perpetual futures contracts, according to a report by Julio Moreno, Research Director at CryptoQuant. Moreno highlighted that while futures demand increased, spot demand continued to decline, a pattern typically seen in bear markets. This divergence suggests that the rally is fueled by leverage rather than new capital inflows, raising concerns about its sustainability.
Moreno warned that such speculative structures often lead to price corrections once futures positions are unwound. CryptoQuant's analysis indicates that the current market conditions resemble those at the onset of the 2022 bear market, posing significant downside risks. Although this does not guarantee a similar outcome, the reliance on futures demand over spot demand could lead to potential price pullbacks.
CryptoQuant Warns of Bitcoin Correction Amid Speculative Rally
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