Bitcoin's price dynamics have been significantly influenced by the interplay between futures and spot markets. Initially, the 2023 bull cycle was driven by futures, but a notable shift occurred as spot market activity surged, further propelling prices.
Since October 2024, both markets have seen increased trading volumes, contributing to Bitcoin's upward momentum. While futures activity has recently declined, spot market demand remains robust, indicating a cooling of speculative excess in futures and strengthening buying pressure in spot markets.
The 30-day EMA of the funding rate shows no signs of overheating, suggesting continued potential for Bitcoin's growth.