Bitcoin's Rally on Treasury Liquidity May Be Short-Lived Without Durable Demand

A recent 22% surge in Bitcoin's price was initially driven by macro factors, but its staying power will depend on whether ETF inflows and spot demand can replace the initial boost provided by U.S. Treasury liquidity.

Fabian Dori, CIO at Sygnum, said that falling BTC-denominated open interest and contained funding rates suggest short covering helped fuel the breakout rather than leveraged longs alone.

U.S. spot Bitcoin ETFs drew $1.92 billion during the breakout week, while continued inflows suggest crypto-native demand is beginning to support the move.