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Bitcoin spot buying outpacing futures despite leverage hitting ATH

Bitcoin spot buying outpacing futures despite leverage hitting ATH
The ratio of open interest to USDT reserve in Bitcoin perpetual contracts has reached an all-time high, indicating signs of overleveraging. The CEO of CryptoQuant warns of a potential pullback once the leverage unwinds but remains bullish on BTC in the long term. Despite this risk, other on-chain metrics remain healthy, including strong retail investor demand and a spike in Google searches for Bitcoin. The recent Bitcoin price spikes are predominantly driven by spot buyers on Coinbase's market, reflecting robust demand from investors. The preference for spot-driven ETFs over futures-based speculation further supports this trend.

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