Bitcoin Demand Wanes as HODLers Hold Strong: Expert Evaluation
Recent data released by Cryptoquant signals a troubling trend in the demand for Bitcoin, showing a notable drop in recent months. Despite this downturn, long-term investors’ steadfastness brings a ray of hope for the cryptocurrency’s future.
Cryptoquant’s data reveals a decline in Bitcoin’s demand since April, plunging into negative territory as of the current month. The statistics highlight a significant shift, with apparent Bitcoin demand plummeting from a 30-day growth of 496,000 BTC in April to a negative growth of 25,000 BTC in August.
Experts at Cryptoquant elaborate that apparent demand, a pivotal metric derived from the total daily Bitcoin block subsidy and the everyday change in BTC supply untouched for a year or more, has been on a downward spiral. This dip in demand is mirrored in the decelerating increase in overall holdings for major Bitcoin players, dropping from a 6% monthly pace in March to a mere 1% recently.
The repercussions of this dwindling demand are visible in Bitcoin’s price performance, with the digital asset slipping from its peak of $73,000 in March to roughly $49,000 in early August. With demand subdued, BTC’s value continues to hover around the $50,000 range, underscoring ongoing market hurdles.
One plausible factor contributing to this downturn in demand could be the US Spot Bitcoin ETFs, witnessing a sharp decline in daily average purchases from March until now. This trend is bolstered by the reduced Coinbase premium for BTC post the introduction of these funds earlier this year.
Cryptoquant emphasizes the need for a resurgence in Bitcoin demand, particularly through Spot Bitcoin ETFs, to initiate a potential price rebound and the prospect of hitting new highs within the current market cycle.
Amid these challenges, long-term investors display resilience and optimism in Bitcoin’s future, upping their stakes to unprecedented levels. Data indicates that these investors persist in accumulating BTC, rapidly expanding their holdings despite prevailing market conditions.
As Bitcoin hovers around $59,400 presently, the cryptocurrency market grapples with significant challenges. Nevertheless, the unwavering confidence of long-term investors and the possibility of heightened demand offer a glimmer of hope for tomorrow.
