That kind of divergence, where leverage expands but underlying buying does not, has historically been associated with fragile price gains that tend to reverse once positioning unwinds.

Prediction markets tell a similar story. On Polymarket, traders are pricing a 56% chance that bitcoin reaches $85,000 this month, but only a 23% probability of $90,000, suggesting expectations are skewed toward a gradual grind higher rather than a breakout.

Taken together, the signals point to a rally that is extending on flows and leverage, but lacks broad conviction. That does not preclude further upside, but it does mean the move remains sensitive to any slowdown in inflows or shift in positioning, conditions that have historically led to sharp reversals rather than sustained advances.

More For You

(Spencer Platt/Getty Images)

Morgan Stanley launched the first bank-issued Bitcoin ETP, but Amy Oldenburg said advisors, regulators and balance sheets still have a long way to go.

What to know:

  • Morgan Stanley’s MSBT pulled in over $100 million in its first six days entirely through self-directed channels, before the product was even available through financial advisors.
  • Despite a formal 2–4% Bitcoin allocation recommendation, advisor adoption remains slow, pointing to a significant education gap that Morgan Stanley is now working to…

About the Author

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Stories