Bitcoin's Price Surge Triggers Leverage Boom: Will $83K Be the Next Target?

Bitcoin's price has been steadily rising and is once again approaching the $80k threshold. At press time, it was trading at $79,031.27 after a 1.9% increase in the past 24 hours.

However, experts are cautioning that something may not be right with the market structure. According to CryptoQuant's data, Bitcoin's demand is shifting from spot-driven to futures- and leverage-driven, which typically occurs at the early stages of a strong bull market.

This shift doesn't necessarily mean investors are selling their Bitcoins; rather, they're preparing to use them as collateral or establish leveraged futures positions. As more traders position themselves on the long side, leverage can amplify buying pressure and potentially accelerate price rallies.

There is also an underlying fear in the crypto community that September may turn out to be a red month, similar to previous years. However, this pattern has weakened since 2023, and Bitcoin ETFs have recorded monthly inflows worth $172.43 million in July and $3.52 billion in August.

The market is showing signs of improving momentum, with the Bull Score jumping from 30 to 80, and the PnL Index moving above its 365-day moving average. These indicators suggest that Bitcoin holders' profitability and market conditions are improving relative to the long-term trend.