Bitcoin's Surge to $107K: Spot Market Demand and On-Chain Metrics Drive Rally

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Bitcoin,Cryptocurrency,Spot Market

Bitcoin recently reached a high of $107,000, fueled by rising spot market demand and positive on-chain metrics. While the asset experienced a slight correction, it remains 2% up over the past day. Analysts attribute the rally to a shift in market dynamics, with spot market demand overtaking speculative activity in futures markets. This trend suggests a stronger foundation for sustained price growth driven by long-term investors.

Bitcoin’s recent surge to $107K appears to have been driven by rising spot market demand and key on-chain metrics.This latest milestone highlighted Bitcoin’s impressive year-to-date performance, which exceeded 150% at press time.

However, since October 2024, the trend has shifted as both the spot and Futures markets saw an increase in trading volumes, triggering further upward momentum in Bitcoin’s price.More recently, while fFutures market activity has begun to cool off, the spot market is gaining dominance. The analyst also pointed out that the funding rate, analyzed using a 30-day exponential moving average , shows no signs of late-cycle overheating.

The report further suggests that while the Futures market will likely experience cycles of increased activity and liquidations, this volatility could attract additional capital inflows into the spot market.from Coinglass revealed that Bitcoin’s Open Interest—a measure of the total value of outstanding Futures contracts—has increased alongside its price.Specifically, BTC’s open Interest has risen by 2.56%, reaching $68.82 billion, while longer-term data showed a substantial 19.

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