Analyst: Institutional Spot Demand is Currently Bitcoin's Primary Price Driver

BlockBeats News, March 5th, CryptoQuant community analyst Maartunn posted on social media, stating, "Bitcoin rose to $74,050 this week, and this trend was not accidental. Multiple data indicate that institutional investment demand is driving this breakout, with Coinbase's premium reaching $61, indicating a significant influx of U.S. institutional buy orders into the market, confirmed by order flow data."

Around $790 million worth of Bitcoin was bought by institutions through TWAP orders ranging from $10,000 to $1 million in size, with TWAP commonly used for large funds to accumulate chips without significantly impacting the market. Technically, Bitcoin has re-entered the $71,700 range high and continued to rise. If it stays above this level, it will confirm the range breakout and maintain a bullish trend.

However, market risks persist. Leverage in the derivatives market has rapidly increased, with $3.55 billion (+18%) in new leveraged funds for Bitcoin and $1.8 billion (+17%) for Ethereum. These new positions require continuous spot demand to remain stable. Once buying support slows down, excessively leveraged positions may be quickly liquidated, leading to volatility. Currently, institutional spot demand remains the main support for Bitcoin's rise."