Is Bitcoin’s Bull Market Just Beginning? Leveraged Bets Suggest Big Moves Are Coming

The recent surge in Bitcoin price appears to align with a shift in investor behavior, according to a CryptoQuant analyst known as ‘crypto sunmoon.’

In a post on the CryptoQuant QuickTake platform, the analyst observed that the current bull market is driven by leveraged bets, particularly in derivatives markets.

This trend is noteworthy as it contrasts with past market cycles where increased deposits often accompanied BTC bull runs to spot exchanges.

Leveraged Bets’ Role in Bitcoin Price Growth

Elaborating further on leverage bets involves using borrowed funds to multiply the size of an investment. For example, with 2x leverage, a trader can open a position twice as large as their capital.

In Bitcoin futures trading, this approach can be profitable during upward price movements but also comes with risks. If the market shifts against their position, traders can face significant losses called liquidation.

The analyst notes that the inflow of Bitcoin into derivatives exchanges signals increased confidence among investors, suggesting a belief in further price gains. This confidence can create a feedback loop, where rising prices encourage additional leveraged bets, further fueling the bull market.

Bitcoin bull market begins with leveraged bets

“The bull market will continue as #bitcoin continues to be deposited into futures exchanges for leveraged bets using derivatives, rather than into spot exchanges for selling.” – By @t0_god

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