Bitcoin’s explosive rise to $106,000 earlier this week was largely fueled by intense spot market demand, with Coinbase alone registering $45 million in daily net buying pressure, according to the latest report from Glassnode.
Spot Market Demand Fuels Rally
Unlike past rallies that were often driven by leveraged positions in the derivatives market, this uptrend has been powered by organic spot accumulation. Glassnode’s analysis highlights that a significant volume of BTC changed hands in the $93,000–$95,000 price zone — now serving as a strong support level. This range also aligns with the cost basis of short-term holders (under 155 days), reinforcing the bullish “stair-step” pattern observed in Glassnode’s Cost Basis Distribution heatmap.
Derivatives Lag as Spot Buyers Take the Lead
While spot markets drove momentum, derivatives activity declined, with perpetual futures open interest falling 10% — from 370,000 BTC to 336,000 BTC. This pullback hints at a potential short squeeze, where bearish positions were forced to close, further supporting price strength. Notably, funding rates have remained neutral, indicating low speculative excess and room for further upside.
Institutional Demand and ETF Inflows Add Fuel
Another key driver has been institutional buying via spot Bitcoin ETFs, with daily inflows peaking at $389 million on April 25 before stabilizing at around $58 million. Coinbase, favored by U.S. institutions, consistently recorded high-volume buys, further validating how spot market demand drove Bitcoin’s rally to $106K.
At the same time, sell pressure on Binance, a major global exchange, dropped sharply — from $71 million per day in March to just $9 million — suggesting investors were buying the dip rather than exiting the market.
Long-Term Holders Take Profits, But Momentum Persists
Despite bullish conditions, some long-term Bitcoin holders have started realizing profits. CryptoQuant’s Avocado Onchain reported a rise in the Binary Coin Days Destroyed (CDD) metric to 0.6, indicating movement of older, dormant coins. However, this figure remains below the 0.8 threshold typically seen at major cycle peaks.
Glassnode’s metrics further show that short-term holder realized profits have spiked to +3 standard deviations above the 90-day average — elevated, but still not signaling an imminent top. In past cycles, higher profit extremes (+5 deviations) were needed to exhaust demand.
