Bitcoin Price Edges Closer to Year-End Recovery
Bitcoin's price has been steadily increasing over the past few days, pushing its value back towards $86,000. According to Glassnode's latest BTC Market Pulse, spot buyers are driving this growth, while futures leverage and options positioning are also on the rise.
This combination of factors is giving Bitcoin enough underlying demand to challenge its 2026 starting area near $87,500. However, the market is becoming increasingly sensitive to leverage, which could lead to a more volatile final move for BTC.
The spot buyers' return to form is a positive sign for Bitcoin, as exchange taker flow has flipped from net selling to net buying during this recent advance. Spot volume has also increased, and momentum has improved without becoming excessively stretched.
However, the complication of leverage remains a concern. Glassnode found that futures open interest is above its historical high band, while funding rates have moved above their normal range. This means that traders are increasingly paying to maintain leveraged long exposure.
The options market is also pricing surprisingly little movement for Bitcoin, with its volatility spread remaining below the low end of its normal range. If volatility expands while positioning remains heavily leveraged, Bitcoin could move through the $87,000 area quickly in either direction.
One positive note for bulls is that institutional demand has not disappeared. U.S. spot Bitcoin ETFs attracted significant inflows over a four-day period, with a total of $999 million entering the market on September 21 alone.