CryptoQuant: Bitcoin Spot Demand Continues to Shrink; Leveraged Long Positions Exacerbate Market Fragility
CryptoQuant analyst MorenoDV_ pointed out that Bitcoin’s recent price action shows a dangerous divergence: Binance taker buy volume has been declining continuously, hitting a multi-month low—indicating a clear weakening in active buying demand. At the same time, Binance’s funding rate has rebounded into positive territory, suggesting traders are adding long positions via leverage.
Historically, rising funding rates alongside shrinking spot demand often signal the market’s entry into a late-stage speculative phase—leverage-driven rallies lacking support from underlying spot capital are structurally fragile. If buying pressure fails to recover meaningfully, the current rise in funding rates may reflect latent risk rather than underlying market strength.
