Bitcoin posted a strong rally in April, rising 12.7 percent, but analysts warn the gains may not be sustainable, according to crypto analytics firm CryptoQuant. The report said the surge was largely driven by leveraged trading in perpetual futures rather than genuine investor demand.
CryptoQuant data showed spot demand for Bitcoin remained negative throughout the month, even as futures activity increased. Research head Julio Moreno said this divergence suggests the rally is fueled by speculation, not long-term accumulation.
Bitcoin surged in April, but weak buyer demand makes the rally vulnerable https://t.co/67W5yOcnFT
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The report said such patterns have historically preceded price corrections, including ahead of the 2022 bear market. Broader factors such as US interest rate expectations and geopolitical tensions linked to the Iran conflict have also influenced price movements.
While Bitcoin ETFs saw $1.9 billion in inflows, analysts cautioned that without stronger spot demand, the current rally could weaken if leveraged positions begin to unwind.
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