The recent Bitcoin (BTC) rally proceeded through a series of rises and stabilization processes, with a notable characteristic of active participation from spot market traders.
According to the Bitfinex Alpha report, Bitcoin showed aggressive buying in the spot market. In contrast, derivatives market traders maintained a relatively cautious stance.
Since mid-April, spot net buying has significantly increased across most exchanges. This was confirmed through the Cumulative Volume Delta (CVD), which measures the net difference between aggressive buying and selling. Bitfinex analysts revealed that the CVD of major centralized exchanges exceeded $45 million per day.
This buying pressure coincided with Bitcoin's rise from $75,000 to over $104,000, with buying pressure gradually accumulating before each breakthrough interval. This reflects actual demand rather than speculative derivatives trading, demonstrating that the current rally is based on solid capital inflow.
Meanwhile, the derivatives market moved reactively with a cautious attitude. This can be confirmed through spot premiums, where after Bitcoin broke through $80,000, spot prices exceeded the average of seven perpetual futures and futures market prices.
Additionally, open interest in perpetual futures contracts decreased. This reflects a short squeeze phenomenon as short-selling forces liquidated their positions betting on Bitcoin's price increase.
Analysts explained, "Consecutive two-way squeezes show that the rally is maturing in a constructive manner" and that "as excessive leverage positions are settled, market positions are readjusted, creating a healthy foundation for sustainable growth".
Such market dynamics are frequently observed in the early stages of continuous upward trends. With simultaneous increases in spot buying and derivatives market purification, the market is assessed to have entered the intermediate stage of a mature bull market, transitioning from speculative leverage to structural buying.
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