Bitcoin Price Surge Driven by Spot Demand, Not Leverage

A recent Bitfinex market report claims that Bitcoin's latest price surge was driven primarily by spot demand, rather than excessive leverage. The analysts argue that this indicates a balanced market that can absorb selling pressure if conditions become less favorable.

The report highlights sustained ETF demand as key to countering the potential impact of a Federal Reserve interest rate hike in September. CoinMarketCap data shows BTC trading around $78,731, up almost 1% in 24 hours, but down 2.32% over the past seven days.

Analysts note that despite the price surge, derivatives market leverage levels are manageable, with open interest currently at $54.02 billion, significantly higher than at the beginning of August. However, the increase has been gradual, and basis levels remain relatively low.