Bitcoin Rally Driven by Spot Demand, Not Leverage, With $88,000 Target

Bitcoin is climbing on spot demand rather than leverage, creating what Markus Thielen describes as a healthier market structure.

Thielen, chief executive officer of 10x Research, wrote on X on May 10 that Bitcoin’s recent advance has been led by spot demand, not an expansion in leverage. Steady inflows into spot exchange-traded funds, gains in crypto mining stocks and positive signals from the options market all support that view.

He also highlighted two key catalysts this week that could support Bitcoin and the broader altcoin market.

Market indicators have also improved. Total cryptocurrency market capitalization rose 2.7% from a week earlier to $2.69 trillion, while average weekly trading volume reached $123 billion, 2% above normal levels.

Bitcoin’s weekly trading volume rose 14% above average to $35.3 billion. Ethereum’s weekly volume reached $18.9 billion, 40% above average. Tether’s market capitalization edged up to $189.6 billion, while its trading volume was 16% above average.

With trading volume increasing and inflows continuing at a moderate pace, Thielen said Bitcoin’s $88,000 target is well within reach. The current market structure also points to further upside, he added.