Bitcoin's Price Surge Driven by 71% Increase in Leveraged Futures Traders

Bitcoin's recent price rally has been predominantly driven by leveraged futures traders, according to an analysis by Glassnode. The company noted in July 2025 that while spot trading cumulative volume delta remains low, futures demand is climbing. This shift from historical influences, where previous Bitcoin rallies were led by spot market demand, underscores a potential fragility in the current uptrend if spot interest does not return.

A detailed analysis by Glassnode, an analytics firm, reveals that Bitcoin futures are seeing increased buying activity without corresponding spot confirmation. Despite low funding rates, the structure lacks robustness. Major participants in this trend include institutional players and leveraged traders, with firms actively engaging in the space. Recent spot BTC ETF inflows demonstrate ongoing institutional interest, adding depth to the market narrative. Increased institutional engagement amid waning spot market support reflects a dynamic marketplace where investor strategies are rapidly evolving. Glassnode's insights underline the causes of current volatility.

The current market situation draws comparisons to past rallies, often led by spot demand. Leveraged dominance now presents new challenges and potential market corrections. Potential financial repercussions include increased sensitivity to regulatory changes and technological advancements. Glassnode's data suggests these dynamics may create ripple effects in adjacent assets.

Bitcoin's recent surge has been notably driven by leveraged traders. The market intelligence firm highlighted that demand from leveraged traders is playing a more significant role in the current rally compared to spot investors. This trend is evident as Bitcoin's price surged past $118,000, driven by strong institutional accumulation and a fear of missing out (FOMO) among investors. The rally has left those awaiting a pullback disappointed, as the cryptocurrency continues to show potential for further growth.

The surge in Bitcoin's price has been accompanied by a significant increase in leveraged positions. Over $1 billion in leveraged positions were wiped out within just 24 hours following the sharp rally that pushed Bitcoin's price past $118,000. This indicates that the rally was largely driven by derivatives, with a strong influx of capital into leveraged trading. Glassnode's data supports this observation, showing that the ongoing surge is being fueled by leveraged demand rather than spot market activity.

The development is further corroborated by the low supply of Bitcoin on exchanges. The limited availability of Bitcoin on exchanges implies that the current surge is not being driven by spot demand. Instead, it is leveraged traders who are playing a more significant role in the price movement. This trend is also reflected in the accumulation rates of small Bitcoin holders. Wallets with under 100 BTC, known as 'shrimp, crab, and fish,' are actively accumulating Bitcoin, contributing to the overall demand.

The rally has also seen a notable increase in the number of holding addresses. On-chain data shows that the "increased holding address" of Bitcoin has reached 248,000, marking a 71% increase in just 30 days. This surge in holding addresses indicates a growing interest in Bitcoin among investors, further fueling the rally. The combination of leveraged trading and institutional accumulation has created a robust environment for Bitcoin's price growth, with no immediate signs of a pullback.