CryptoQuant: The recent rise in the crypto market is driven by institutional demand, but leverage risks will intensify volatility.

DeepFlowTech · 2026-03-05T00:43:12+00:00

Bitcoin recently increased by 7% due to institutional demand, breaking through the $71,700 resistance level and maintaining a bullish structure. However, market leverage has risen rapidly, posing potential risks. Continuous spot demand is needed to avoid liquidation-triggered volatility.

DeepFlowTech

2026-03-05 00:43:12

Abstract generation in progress

Deep Tide TechFlow News, March 5th, according to CryptoQuant community analyst Maartunn, Bitcoin price has recently increased by 7%, rising from $68,000 to $73,500. This surge is mainly driven by strong institutional demand. Coinbase premium gap soared to $61, indicating that US institutional investors are flooding into the market. Hyblock data shows that $790 million worth of Bitcoin was purchased through TWAP orders, a typical strategy used by large investors to increase holdings without overly impacting the market.

From a technical perspective, Bitcoin has broken through the key resistance level of $71,700 and remains above it, confirming a breakout and maintaining a bullish structure.

However, the analyst also warns of potential risks. Leverage in the derivatives market has rapidly increased, with Bitcoin and Ethereum adding $3.55 billion (+18%) and $1.8 billion (+17%) respectively. These new positions require sustained spot demand to stay stable. If buying support weakens, over-leveraged positions could be quickly liquidated, intensifying market volatility.

BTC7,71%

ETH9,05%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.