Bitcoin’s surge lacks extreme leverage that powered past rallies

Bitcoin’s rebound from the depths of July is still missing one of its usual star players: Leverage.

Crypto traders have yet to meaningfully pile on leverage — essentially, borrowed money that can amplify returns or losses — as they have in past rallies. The spread between Bitcoin futures and its spot price has shriveled relative to February, when the cryptocurrency was in the midst of a rally that ultimately reached an all-time high, suggesting that demand for leveraged long positions remains muted.

To FRNT Financial’s Stephane Ouellette, that could suggest two things — the first being that traders aren’t convinced Bitcoin’s return to more than $46,000 is a true breakout.