Bitcoin's Strongest Weekly Gain Since 2023 Raises Questions About Rally's Authenticity

Bitcoin's price surge over the past week has been its strongest since 2023, rising by over 23% in just seven days. This outpaces the decline of major US stock indices, with the S&P 500 falling 1.43% and MSCI World down 1.19%. Bitcoin's price is now hovering around $78,000.

However, analysts have raised concerns that this rally may not be driven by new leveraged bets or broad adoption. Open interest in Bitcoin has actually fallen by 42,907 BTC over the same period, from 319,896 to 335,409 BTC. This suggests a decline in trading activity and leverage.

CryptoQuant analyst Axel Adler Jr.'s dashboard shows that short-term holder supply in profit jumped from 26.1% to over 74%, with nearly three-quarters of this supply having been at a loss just a week earlier. The cohort's net profit/loss to exchanges indicator has also crossed Adler's +25K threshold, potentially signaling increasing sell-side pressure.