Bitcoin’s Rally May Be Unsustainable Due to Weak Spot Demand, Experts Say

• Experts said the current bitcoin rally lacks sufficient support from the spot market.
• The market structure resembles the January–March 2026 period, when derivatives played a growing role.
• The rise in volumes was driven by buying, which may indicate a shift into an early bull phase, CryptoQuant noted.

The current bitcoin rally may be insufficiently sustainable due to weak spot-market demand. According to CryptoQuant, the market structure increasingly resembles the situation seen in January–February and March 2026, when derivatives played a major role.

Analysts note that a rally without sustained spot demand looks less convincing. Under such conditions, they recommend focusing more on risk management than on expectations of the rally continuing.

Trading volumes surged

At the same time, other CryptoQuant data indicates a notable rebound in trading activity. After falling to multi-year lows during the bear market, trading volumes in both the spot market and the perpetual futures market spiked on August 21 amid bitcoin’s price increase.

Previous volume spikes mostly coincided with sell-offs. This time was different: the surge in activity happened alongside a 24% rise in bitcoin, which, according to CryptoQuant, indicates that buying dominated.

Analysts believe the rebound in trading volumes could be one of the signs that the market is shifting from a bear phase to a bull phase.

As a reminder, earlier experts warned about the risk of a bitcoin correction amid retail euphoria.

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