Bitfinex Report: Spot Demand Drives Bitcoin Rally

BlockBeats News, May 21st, Bitfinex Alpha released a report stating that since Bitcoin reestablished itself above the $92,000 range low in late April, it has continued to demonstrate strong resilience and structural strength, with the price steadily rising. This recent uptrend is clearly being driven by the spot market, characterized by a rapid rally following a brief and distinct consolidation phase. This trend indicates that the current market is in a healthy phase of chip accumulation, backed by strong genuine demand rather than speculation-driven overheating. The spot cumulative volume delta (CVD) of major exchanges remains positive, further confirming that the market is led by genuine buying pressure rather than leveraged speculators.

Meanwhile, the position performance in the derivative market is more responsive, with the fluctuation of open interest contracts showing that the market is in a transition phase, accompanied by a reset triggered by short squeezes and liquidations. This cleansing helps establish a healthier foundation, allowing speculative bubbles to deflate, with the current upward momentum being driven by real fund flows, making the support more robust. Although the possibility of a short-term pullback still exists, the overall trend remains positive.