CryptoQuant: The recent rise in the crypto market is driven by institutional demand, but leverage risks will exacerbate volatility

By: rootdata|2026/03/05 09:46:06
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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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