Bitcoin's Resilience: Unstoppable Surge Amidst Hype and Recession

Bitcoin's recent bull-market surge has been characterized by a series of price gains and horizontal consolidations, with pullbacks of 20% or more remaining elusive. This may be due to the dominance of spot-market buyers and low leverage in the system. The spot market, where assets are traded for immediate delivery, has seen increased activity, while the share of derivatives trading has declined. The use of leverage in derivatives trading is lower compared to previous bull runs, reducing the likelihood of liquidations-induced volatility. Additionally, trading activity is more concentrated in standard futures on regulated exchanges like the Chicago Mercantile Exchange (CME), where extreme leverage is less common. Lastly, the use of coins as margin for trading has decreased, with cash or stablecoin-margined contracts becoming more prevalent.