Bitcoin Upward Trend ‘Fragile’ As Spot Market Volume Drops — A Cause For Alarm?
Bitcoin has recently shown strong bullish momentum, breaking resistance levels to reach a new all-time high of approximately $107,770. Despite this growth, on-chain data indicates a need for caution among investors. An increase in Bitcoin futures trading on Binance since May 5 contrasts with a significant decline in spot market activity. High futures trading volume suggests a growing appetite for short-term bets, while low spot market volume indicates reduced long-term confidence in Bitcoin. This imbalance points to increased speculative trading, driven by risk-on sentiment rather than solid long-term belief. The current market dynamics may heighten volatility, necessitating caution in investment decisions. Bitcoin's price has risen by over 4% in the past week, with a slight 0.2% increase in the last 24 hours.
