Bitcoin

The Bitcoin price has been under significant bearish pressure in the past few weeks, and this crypto researcher has explained the <a href="https://bitcoinist.com/bitcoin-demand-investors-buying-btc-5-5x-miner/" target="_blank" rel="noopener ">role of demand</a> in the market correction. 
<h2 id="strong-btc-apparent-demand-is-falling-cause-for-alarm-strong">BTC Apparent Demand Is Falling – Cause For Alarm?</h2> 
In a recent post on the X platform, CryptoQuant’s head of research Julio Moreno<a href="https://x.com/jjcmoreno/status/1806707556368200074" target="_blank" rel="noopener nofollow"> explained</a> how the latest Bitcoin price correction is linked to the falling Bitcoin demand. This analysis is based on the Bitcoin apparent demand metric on the CryptoQuant platform. 
Apparent demand calculation is often used in financial markets to evaluate demand by comparing production levels and inventory changes. Basically, this metric provides a clear picture of whether demand is rising or falling. 
In the case of cryptocurrencies, like Bitcoin, apparent demand is calculated by utilizing the concept of inactive supply. This concept tracks the amount of Bitcoin that has not been moved or transferred over a certain period. 
As Moreno highlighted, the chart below uses the 1-year inactive supply as a “proxy for inventory.” This implies that it monitors the amount of BTC that has not been moved or transacted for over a year. 
<img loading="lazy" decoding="async" class="aligncenter" src="https://pbs.twimg.com/media/GRK1FdZXgAAifiM?format=jpg&amp;name=medium" alt="Bitcoin" width="1200" height="675"> 
According to data from CryptoQuant, approximately 23,000 BTC have flowed out of the 1-year inactive supply in the last 30 days. This suggests a decline in Bitcoin demand, as it seems <a href="https://bitcoinist.com/bitcoin-hodler-supply-decline-worrying-sign/" target="_blank" rel="noopener ">long-term investors</a> are opting to offload and move their Bitcoin. 
This decrease in demand has several implications, specifically on the value of the premier cryptocurrency. For instance, the CryptoQuant head of research noted that the low demand is one of the catalysts of the recent price correction. 
The influx of significant BTC amounts from long-term holders to the market increases the available supply, thereby putting downward pressure on the prices. Moreover, price dips can result when the market’s buying pressure is insufficient to soak up the additional supply. 
CryptoQuant revealed in a weekly report that the Bitcoin demand has significantly declined compared to Q1 — following the launch of the US <a href="https://bitcoinist.com/vaneck-spot-solana-etf/" target="_blank" rel="noopener ">spot exchange-traded funds</a>. As prices are currently down, it appears that an increase in BTC demand can potentiate the resumption of the current bull run.&nbsp; 
<h2 id="strong-bitcoin-price-at-a-glance-strong">Bitcoin Price At A Glance</h2> 
As of this writing, the Bitcoin price stands around $60,790, reflecting a 1.6% decline in the past week. According to data from CoinGecko, the market leader is down by nearly 6% in the past week. 
<img loading="lazy" decoding="async" class="aligncenter size-medium" src="https://www.tradingview.com/x/URlbZcPP/" alt="Bitcoin" width="1832" height="1314"> Featured image from iStock, chart from TradingView

Researcher Explains How Decline In Bitcoin Demand Is Behind Latest Price Correction

Съдържание

Bitcoinist

Други статии, публикувани на 29.06.2024 г.

Bitget lists Qubic (QUBIC), the AI-based Layer 1 blockchain on Spot market (29 Jun)

Samson Mow Predicts Bitcoin’s Future Price Surge

Hong Kong’s Securities and Futures Commission flags unregistered VATPs

BitMart exchange list Abey Token on its platform

Is The Bitcoin Price Correction Over? Here’s The Support Level To Watch

Dogecoin (DOGE) Skyrockets 38% In Trading Volume – Here’s Why

Присъединете се към нашия безплатен бюлетин за ежедневни крипто актуализации!