Bitcoin's Rally May Stall Without Stronger Spot Buying

Bitcoin's recent 42.5% Q3 rally has raised hopes for further gains, but analysts at Bitfinex warn that another sustained advance will require stronger spot buying.

The team notes that reduced leverage limits liquidation risk but does not create fresh demand, and that the market needs buyers willing to acquire Bitcoin directly.

Bitfinex's analysis suggests that a recovery above $85,000 could return 760,000 BTC to profit, as fewer coins remain available from holders waiting to sell at breakeven.

The analysts also view a share of Bitcoin supply in profit above 75% as relevant to assessing whether the market has entered a new bull phase.