Bitcoin's Spot Buyers Fuel Recovery Amid Rising Leverage

Bitcoin's recent recovery has been driven by spot buyers, who have played a significant role in pushing the cryptocurrency toward $86,000. According to Glassnode, exchange taker flow switched from net selling to net buying during this uptrend, while spot trading volumes also increased.

Frederik Theissen at Glassnode noted that price momentum improved without signs of being overstretched, marking a reversal from earlier in September when Bitcoin struggled to stay above $80,000. However, the resistance zone between $85,000 and $87,300 remains a key barrier for a larger breakout.

Futures open interest climbed above its historical high band, and funding rates rose above their normal range, indicating increased trading activity and leverage. Options market signals muted volatility, with open interest remaining high at nearly $41 billion but volatility spreads dropping below the lower end of their usual range.

The U.S. spot Bitcoin exchange-traded funds (ETFs) saw substantial inflows in August, totaling $3.52 billion and bringing total ETF assets near $100 billion. This sustained investor interest supports broader market recovery efforts.