Bitcoin Price Jumps 22% to Near $79K, Despite Declining Leverage

Bitcoin's price has surged by about 22% since mid-August, reaching nearly $79,000. Despite this significant jump, derivatives data shows that traders have not chased the move with more leverage.

Coin-denominated open interest in Bitcoin fell by 11%, while the market value of those positions increased. This suggests that existing contracts gained value without a broad rush into new positions.

Fresh demand for Bitcoin ETFs also added to spot buying during the rebound, with $1.6 billion of net inflows reported from Monday through Thursday. The largest daily inflow was on Thursday, at $606 million, the highest since May.

The rally's structure is different from a typical leverage-driven surge, which raises questions about its sustainability. Bitcoin now faces resistance near $79,000 to $80,000, and sellers may defend it after the 22% climb.