A recent bitcoin-Metrics-Still-Signal-Weak-Demand-Dyn” rel=”nofollow noopener” target=”_blank”>Research Report by the Cryptoquant on-chain analytics platform noted that demand for bitcoin (btc) has fallen into negative territory. The platform also highlighted the bitcoin-news/the-bitcoin-unmoved-supply-in-6-months-shows-strong-hodl-sentiment-so-whos-selling/#:~:text=Miners%20are%20said%20to%20have,prices%20and%20high%20mining%20difficulty.” rel=”nofollow noopener” target=”_blank”>unshakable conviction among long-term holders, which is certainly positive for the flagship cryptocurrency.
bitcoin demand is declining
Cryptoquant claimed that the demand for the flagship cryptocurrency The apparent demand for btc has been declining since April and has fallen into negative territory since the beginning of the month. The report further revealed that the apparent demand for btc has fallen from a 30-day growth of 496,000 btc in April to a negative growth of 25,000 btc this month.
Cryptoquant explained that apparent demand refers to the difference between the total daily bitcoin block subsidy and the daily change in bitcoin-news/the-bitcoin-unmoved-supply-in-6-months-shows-strong-hodl-sentiment-so-whos-selling/#:~:text=Miners%20are%20said%20to%20have,prices%20and%20high%20mining%20difficulty.” rel=”nofollow noopener” target=”_blank”>The static supply of btc For a year or more, this key indicator signals a weakness in btc demand growth. This weak demand for bitcoin is also evident in how the increase in total holdings of large bitcoin investors has slowed from a monthly pace of 6% in March to 1%.
The declining demand for the flagship cryptocurrency has consequently affected its price, seeing btc fall from its All-time high (ATH) from $73,000 in March to as low as $49,000 in early August. The cryptocurrency has also continued to hover around $50,000 as demand remains low.
Cryptoquant suggested that this slowdown in btc demand could be due to the US Spot bitcoin ETFAverage daily purchases of these funds have declined from 12,500 btc in March to 1,300 btc last week. This slow spot demand in the US also coincides with the lower premium for btc on Coinbase. The bitcoin premium on Coinbase had increased to 0.25% after the launch of these funds in January.
Cryptoquant commented that an increase in bitcoin demand growth, primarily through bitcoin Spot ETFs, is essential for a btc price recovery and the possibility of reaching new highs in this market cycle.
Long-term holders remain bullish on bitcoin
Despite declining demand for bitcoin, long term holders They remain bullish and have taken advantage of lower prices to add more btc to their positions. According to Cryptoquant, these btc holders have continued to accumulating btc at “unprecedented levels,” with its holdings growing at a record monthly rate of 391,000 btc.
Interestingly, the demand for these long term holders is growing faster than in the first quarter of the year, when btc was trading near its ATH, further highlighting how this category of investors is taking 'Buying the dip“Seriously. NewsBTC bitcoin-news/the-bitcoin-unmoved-supply-in-6-months-shows-strong-hodl-sentiment-so-whos-selling/#:~:text=Miners%20are%20said%20to%20have,prices%20and%20high%20mining%20difficulty.” rel=”nofollow noopener” target=”_blank”>recently reported that 75% of the btc supply, held by these long-term holders, has not moved in over six months despite falling prices.
At the time of writing, bitcoin is trading around $59,400, down more than 2% over the past 24 hours, according to bitcoin/” rel=”nofollow noopener” target=”_blank”>data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
