Bitcoin surged in April, but weak buyer demand makes the rally vulnerable

Bitcoin surged in April, but its run could be on shaky ground, according to crypto data provider CryptoQuant. The flagship crypto coin gained 12.7% for the month, registering back-to-back monthly gains and its best month since April 2025. It eked out a nearly 2% gain in March, following five consecutive down months. Ether gained 8% in the same period, also its second up month in a row and best month since August. Perpetual futures — the dominant source of leveraged crypto trading activity — was the "sole driver" of the rally, however, according to CryptoQuant. The firm's apparent demand metric, which tracks the 30-day change in outright purchases of bitcoin, stayed negative throughout April while futures demand rose. The two trends combined are often a warning sign, according to Julio Moreno, head of research at CryptoQuant. They suggest the upward price action is fueled by speculation rather than fundamentals. "This divergence – rising futures demand alongside contracting spot demand – suggests price appreciation is driven by leverage rather than fresh coin accumulation," Julio Moreno, head of research at CryptoQuant, said in a report Thursday. "Historically, such configurations lack the structural foundation required to sustain price gains and typically resolve via correction once futures positioning unwinds." Stock Chart Icon Stock chart icon Bitcoin surged in April, after ekeing out a modest March gain that followed five consecutive down months. …