bitcoin has seen a rally past the $71,000 level over the past day as on-chain data shows that demand for the coin has increased markedly.
bitcoin Apparent Demand Has Soared to Notable Positive Levels Recently
As an analyst at a CryptoQuant Quicktakebtc-Demand-is-Making-a-Comeback” target=”_blank” rel=”noopener nofollow”> post explainedbitcoin demand seems to have increased again recently. The on-chain metric of interest here is “apparent demand,” which tracks the difference between btc production and changes in its inventory.
The only way to produce btc is by adding new blocks to the chain and receiving a block subsidy as compensation, so the production of the asset is equal to the amount that miners earn in rewards every day, known as Issuance.
btc “inventory” can be considered part of its circulating supply, which has been idle for over a year. Therefore, inventory changes would be the net amount of tokens expiring or leaving this pool.
Now, here is a graph showing the trend in apparent demand for bitcoin since the beginning of the year 2024:
<img data-recalc-dims="1" decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/10/Bitcoin-Set-to-Test-ATH-as-Demand-Returns-to-February.png" alt="Apparent bitcoin Demand” width=”1280″ height=”720″/>
The value of the metric appears to have been positive during the last few weeks | Source: btc-Demand-is-Making-a-Comeback" target="_blank" rel="noopener nofollow">CryptoQuant
As shown in the chart above, bitcoin's apparent demand had plummeted to levels around the neutral mark during the previous consolidation phase the asset had gone through. Even so, recently its value has increased to notable positive levels.
After the increase, the indicator has reached the same maximum as in February of this year. From the chart, you can see that what followed back then was the rally of btc to a new all-time high (ATH).
So far, the recent burst in demand has also accompanied a fresh rally in the cryptocurrency's price, which has taken the asset above the $72,000 level. Given the trend that occurred in the first quarter of the year, it is possible that btc could enjoy further upside if apparent demand continues to grow.
In other news, bitcoin's energy value has recently crossed the $100,000 level, as Capriole Investments founder Charles Edwards explained in an x. x.com/caprioleio/status/1850860998065901607″ target=”_blank” rel=”noopener nofollow”>mail.
“Energy value” here refers to a model for cryptocurrency that calculates its fair value based on the amount of energy (measured in joules) expended to produce it. The energy here is naturally what miners use to power their computing machines and perform the task of btc mining.
Here is the chart of the metric shared by the analyst:
<img loading="lazy" decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/10/Bitcoin-Set-to-Test-ATH-as-Demand-Returns-to-February.jpeg" alt="bitcoin energy value” width=”1220″ height=”896″/>
The trend in the btc Energy Value over the coin's history | Source: x.com/caprioleio/status/1850860998065901607/photo/1" target="_blank" rel="noopener nofollow">@caprioleio on x
The chart shows that this is the first time that bitcoin's energy value has surpassed this level.
btc Price
At the time of writing, bitcoin is trading at around $72,400, up almost 8% from last week.
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Looks like the price of the coin has shot up over the last 24 hours | Source: BTCUSDT on TradingView
Featured image by Dall-E, CryptoQuant.com, Capriole.com, TradingView.com chart
