Coinbase noted in its latest assessment of the cryptocurrency market that Bitcoin’s rally may be stronger than it appears. The company claimed that this rally was supported not only by leveraged trading, but also by increased real demand and reduced supply dynamics.
According to Coinbase analysis, the fact that inflows into Spot Bitcoin ETFs in particular are nearing their highest levels this year indicates that institutional demand is returning. This suggests that the market’s upward trend is based on a more solid foundation. At the same time, the continued accumulation of long-term investors is concentrating Bitcoin supply in “strong hands.”
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The report notes that one of the triggers for the recent rally was the liquidation of short positions, recalling that similar “short squeeze” movements have triggered broader bullish trends in the past. However, Coinbase said sustained increases are generally more sustainable when supported not only by leverage but also by real demand from the spot market.
On the other hand, the analysis pointed out that the level of approximately $80,000 is an important threshold. This level represents an average cost for short-term investors, and if this level can be regained, a stronger trend could be confirmed. Otherwise, the analysis warned that the rejection could perpetuate the market downturn.
*This is not investment advice.
