- Analysts highlighted growing spot demand while futures activity cooled, sustaining Bitcoin’s upward momentum.
- Bitcoin’s MVRV ratio at 2.69 and rising Open Interest suggested further potential for price growth.
Bitcoin [BTC] continues to dominate headlines as it maintains its upward momentum, recently reaching a new all-time high of $107,822.
This latest milestone highlighted Bitcoin’s impressive year-to-date performance, which exceeded 150% at press time.
However, after touching this peak, the asset experienced a modest correction, trading at $107,064. This reflected a slight 0.6% decline from the recent high, but still marked a 2% gain over the past day.
Amid this price performance, a recent analysis from CryptoQuant shed light on the underlying market forces contributing to the current rally, emphasizing the increasing role of spot market demand in sustaining Bitcoin’s price growth.
Spot market demand drives Bitcoin’s momentum
According to the CryptoQuant analyst, Bitcoin’s ongoing bull cycle, which began in early 2023, was initially fueled by speculative activity in the Futures market.
However, since October 2024, the trend has shifted as both the spot and Futures markets saw an increase in trading volumes, triggering further upward momentum in Bitcoin’s price.
Source: CryptoQuant
More recently, while fFutures market activity has begun to cool off, the spot market is gaining dominance.
This shift suggests that buying pressure from long-term investors and retail participants is increasing, reducing speculative excess and providing a stronger foundation for sustained price growth.
The analyst also pointed out that the funding rate, analyzed using a 30-day exponential moving average (EMA), shows no signs of late-cycle overheating.
This indicates that Bitcoin’s bullish trajectory has room for further expansion without immediate signs of correction.
The report further suggests that while the Futures market will likely experience cycles of increased activity and liquidations, this volatility could attract additional capital inflows into the spot market.
Growing optimism
Beyond the surge in spot market demand, other key Bitcoin metrics further validated the asset’s positive outlook.
Data from Coinglass revealed that Bitcoin’s Open Interest—a measure of the total value of outstanding Futures contracts—has increased alongside its price.
Source: Coinglass
Specifically, BTC’s open Interest has risen by 2.56%, reaching $68.82 billion, while longer-term data showed a substantial 19.13% increase, bringing the total to $100.63 billion.
Rising Open Interest typically signals increasing market activity and investor confidence in Bitcoin’s future price movement.
Additionally, CryptoQuant data highlighted Bitcoin’s Market Value to Realized Value (MVRV) ratio, which has climbed to 2.69 as of the 16th of December.
The MVRV ratio is a key on-chain metric used to evaluate whether an asset is overvalued or undervalued relative to its realized value.
Source: CryptoQuant
Read Bitcoin’s [BTC] Price Prediction 2024–2025
An MVRV ratio above 2.5 indicates that Bitcoin is in a strong bull phase, but it also suggests that investors may soon begin taking profits.
Historically, MVRV values above 3 have signaled market peaks, so the current level of 2.69 suggests Bitcoin still has room for upward movement while signaling a need for caution among traders.
