CryptoQuant analyst Axel Adler Jr. analyzed that while Bitcoin (BTC) is currently approaching the criteria for entering a bull market based on on-chain indicators, the recent price increase is being driven more by futures leverage than by spot trading. He explained, “In the last 24 hours, the BTC price increased by 3.9%, and during the same period, Open Interest (OI) rose by approximately 11,200 BTC (3.4%). Notably, OI temporarily increased by 15,200 BTC over a 6-hour period, and the leverage squeeze index climbed to 63, indicating a trend of increasing long positions. If this rise were simply due to short covering, OI would typically decrease, but the significant increase in OI suggests that new futures leverage inflow is the primary driver of the price increase.”
