Futures drove up Bitcoin's price in April while spot demand declined, which CryptoQuant warned has historically preceded extended price declines.
Bitcoin could be setting up for a multimonth price decline, after a rally in April driven mainly by futures traders while spot demand declined, according to the crypto analytics firm CryptoQuant.
Bitcoin gained around 20% in April, rising from $66,000 to a peak of $79,000 in a rally “driven entirely by growth in perpetual futures demand,” CryptoQuant said in a report on Thursday.
Meanwhile, spot demand for Bitcoin contracted throughout the rally, “indicating that the market’s marginal buyer was speculative, not fundamental,” it said.
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