The $100K Mirage: Bitcoin’s Rally Not Backed By On-Chain Strength
Bitcoin briefly surpassed $100,000, reaching nearly $108,000 before a pullback. The surge was primarily driven by traders using borrowed funds rather than new buyers. On-chain data indicated high trading volumes in Bitcoin futures, fueled by speculative bets, while funding rates and three-month futures basis declined, reflecting reduced bullish sentiment. Spot trading remained subdued, with daily volumes significantly lower than previous cycle highs. Institutional purchases continued, with major firms acquiring approximately $1 billion in Bitcoin and US-listed ETFs buying over $1.5 billion. Only 7 million BTC are available on exchanges, with 14 million held long-term, creating a potential supply squeeze. The recent price increase appears driven by margin traders, with corrections likely following such activity. Continued institutional buying may provide support for future price increases. As of June 28, Bitcoin was trading at $106,500, down 0.85%. Market observers await renewed spot demand or stabilization in futures before confirming a solid uptrend.
