CryptoQuant: The recent rise in the crypto market is driven by institutional demand, but leverage risks will exacerbate volatility
According to analysis by CryptoQuant community analyst Maartunn, the price of Bitcoin has recently risen by 7%, climbing from $68,000 to $73,500, driven primarily by strong institutional demand.
The Coinbase premium has surged to $61, indicating that U.S. institutional investors are flooding into the market. Hyblock data shows that $790 million worth of Bitcoin was purchased through TWAP orders, a typical method for large investors to accumulate without excessively impacting the market.
From a technical perspective, Bitcoin has broken through the key resistance level of $71,700 and maintained its position above it, confirming the breakout and sustaining a bullish structure. However, the analyst also warns of potential risks in the market.
Leverage in the derivatives market has rapidly increased, with Bitcoin and Ethereum adding $3.55 billion (+18%) and $1.8 billion (+17%) in leverage, respectively. These new positions require sustained spot demand to remain stable; if buying support weakens, over-leveraged positions may be quickly liquidated, exacerbating market volatility.
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