Bitcoin is climbing on thin volume, leaving rally vulnerable to macro shock

Bitcoin's recent climb towards $80,000 is showing signs of weakness, with low trading volume and muted derivatives activity raising concerns about its sustainability. According to Markus Thielen, head of 10x Research, Bitcoin's 4.7% weekly rally was accompanied by a 17% drop in weekly trading volume, indicating a lack of conviction from leveraged traders. While Bitcoin ETFs have seen consistent inflows and Bitcoin dominance has risen, Thielen describes the market as being in a "low-funding, low-volume regime" that reflects hesitation rather than momentum. Options markets also suggest traders are anticipating modest price swings. Despite these bearish signals, the limited leveraged long positions reduce the risk of forced liquidations. However, the rally's durability hinges on external macroeconomic factors, as the current low participation suggests it may struggle to hold without broader market support.

(Source：CoinDesk)