Bitcoin Nears Bull-Market Threshold on Futures Leverage

Bitcoin (BTC) has been creeping closer to entering a bull market, but it hasn't officially made the transition yet. The recent price surge can be attributed more to rising leverage in the futures market rather than spot demand.

A recent analysis found that the increase in Bitcoin's value was driven less by buying on the spot market and more by an increase in futures open interest (OI) and fresh futures leverage.

This reliance on futures leverage is a concern, as it could lead to a pullback if the leverage unwinds quickly. If the rally continues, Bitcoin could enter a bull-market phase, but for now, it remains just below the threshold.