Bitcoin Surge Driven By Liquidations Not Real Demand

Bitcoin rises above $71,000 again, but the market does not confirm. Indeed, volumes fall to unprecedented levels since 2023, while participation remains limited. This increase, far from reflecting an influx of buyers, seems driven by external factors. This discrepancy between price and activity raises questions about the strength of the ongoing movement.

Volumes Free-Falling Despite Bitcoin’s Rise

The bitcoin market shows a striking paradox: rising prices accompanied by a sharp decline in spot activity. Volumes on Binance have dropped to around $52 billion, their lowest level since September 2023, compared to $88 billion previously.

This contraction occurs while BTC surpasses $71,700, a level that should have attracted more capital. As analyst Darkfost points out, “the rally is more fueled by liquidations than by real demand”.

Main data confirm this gap between price and participation :

• $52 billion spot volumes on Binance, the lowest since 2023 ;
• $6.38 billion flow over 7 days on Binance compared to $5.14 billion on Coinbase ;
• Open interest down by 9,700 BTC (-4 %) ;
• Over $44 million in short liquidations within one hour.

These data reflect a market where the rise relies more on technical mechanisms than on an influx of new buyers. The open interest decrease shows position closures, while massive short seller liquidations mechanically amplify price progression.

A Market Influenced by Whales and Tensions

Beyond classic market dynamics, bitcoin’s recent evolution takes place in an environment strongly influenced by external factors. Geopolitical tensions, notably related to Iran and the United States, have contributed to fuel the rise. Several observers describe a market “reacting to news”, where macroeconomic announcements dictate short-term movements.

On-chain data also reveal the central role of major players. Whale activity reaches a high level, with an index at 74.3, a peak in this cycle. This intensity reflects capital rotation and hedging strategies. At the same time, the Coinbase premium remains negative, indicating limited US demand. This configuration reveals a market dominated by specific actors, without broad participation from retail investors.

In this context, bitcoin’s trajectory remains uncertain. A rise driven by external factors and liquidations can quickly lose momentum without buyer support. Strong whale activity, combined with weakened spot demand, suggests an environment prone to abrupt movements.

The discrepancy between price and activity casts doubt on the solidity of the current movement. As long as demand does not strengthen, the bitcoin price could be exposed to rapid adjustments. The next sessions will show whether this rally fits into a sustainable dynamic or is just an episode driven by temporary factors.