Bitcoin Rally Built on Real Demand, Not Speculation, Says Matrixport

A new analysis from crypto services firm Matrixport suggests that Bitcoin’s current rally is being powered by strong spot market interest rather than high-risk speculation, marking a shift toward more stable market dynamics.

As Bitcoin flirts with its previous all-time highs, Matrixport notes that futures open interest has surged to $34 billion—a record level. Yet, despite this build-up, funding rates remain flat, indicating that leveraged positions are not driving the market. In other words, organic demand is in the driver’s seat.

The firm argues that the absence of elevated funding fees suggests a healthier rally with lower chances of abrupt corrections. Unlike past cycles where excessive leverage led to flash crashes, the current phase appears more grounded, supported by long-term holders rather than short-term speculators.

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Matrixport sees this as a structural evolution in the crypto market, pointing to increased involvement from institutional investors and a growing dominance of spot purchases. This shift, they argue, could provide Bitcoin with a more resilient foundation for future price action.

Volatility remains subdued, further reinforcing the view that the market is progressing without frothy speculation. While price surges remain possible, the data hints that major pullbacks driven by liquidation cascades are less likely in the near term.

Alexander Stefanov