Bitrabo Editorial
Recent on-chain analysis reveals that the “Apparent Demand” metric for Bitcoin has turned positive again. This shift may have implications for Bitcoin’s price.
Bitcoin’s Apparent Demand Indicator Rebounds
In a recent update shared on X, Ki Young Ju, the CEO of CryptoQuant, highlighted the upward trend in Bitcoin’s Apparent Demand indicator.
According to Young Ju, “Apparent Demand” measures the gap between Bitcoin’s production and any changes in its inventory. “For Bitcoin, production comes from mining rewards, while inventory tracks the supply that has remained inactive for over a year,” he explained.
Mining issuance relates to the total Bitcoin that miners generate by validating transactions and adding blocks to the blockchain. Meanwhile, the one-year inactive supply denotes coins that haven’t moved on the network for more than a year.
The following chart illustrates the Apparent Demand for Bitcoin as noted by the analyst.
The graph indicates that Bitcoin’s Apparent Demand surged to notably positive levels during the price rally to its new all-time high earlier this year.
A positive reading indicates that the reduction in Bitcoin’s inventory is outpacing its production. “When the inventory decline surpasses production, demand rises; otherwise, it falls,” noted the CryptoQuant CEO.
However, this heightened demand was not sustainable, leading to a neutral reading as the price entered a consolidation phase.
Recently, this pattern of stable yet neutral readings appears to have shifted, as the indicator has shown an upward spike.
While the current Apparent Demand does not match the heights seen during the March all-time high, its notable resurgence points to renewed interest in Bitcoin.
Furthermore, another indicator signaling new demand is the Realized Capital from fresh investors, as highlighted by CryptoQuant’s Axel Adler Jr. in a recent post.
The Realized Capital track the cumulative capital invested in Bitcoin by all holders. The recent data focuses on “new investors,” those who have acquired their Bitcoin in the last month, serving as an indicator of fresh capital entering the market.
“There has been a 3% increase in demand for Bitcoin purchases among new investors over the past ten days, which is a positive development for the market,” the analyst remarked.
Current Bitcoin Price
Earlier today, Bitcoin approached the $68,000 mark but experienced a correction, bringing its price down to $66,100.