Bitrabo Editorial
A recent analysis conducted by Cryptoquant, an onchain analytics platform, revealed that the demand for Bitcoin (BTC) has shifted into negative territory. The report also emphasized the steadfast belief of long-term holders, which is seen as a positive sign for the primary cryptocurrency.
Decline in Bitcoin Demand
Cryptoquant’s findings indicated a decline in the demand for Bitcoin since April, with a noticeable drop into negative territory since the beginning of this month. The research shows that the visible demand for BTC has decreased from a 30-day growth of 496,000 BTC in April to a negative growth of 25,000 BTC currently.
The apparent demand, as explained by Cryptoquant, refers to the variance between the daily total Bitcoin block subsidy and the everyday change in BTC’s unmoved supply lasting a year or more. This notable indicator denotes a frailty in Bitcoin’s demand growth. This weakened demand is also evident in the slower increase in the overall holdings of prominent Bitcoin investors, decreasing from a monthly rate of 6% to 1% since March.
The declining demand for Bitcoin has had repercussions on its price, dropping from its peak of $73,000 in March to as low as $49,000 in early August. Bitcoin has since been fluctuating in the $50,000 range due to the sustained low demand.
Cryptoquant suggested that the deceleration in Bitcoin’s demand might be ascribed to the U.S. Spot Bitcoin ETFs, with the average daily acquisitions from these funds plummeting from 12,500 BTC in March to 1,300 BTC recently. This subdued spot demand in the U.S. aligns with the decreased premium for BTC on Coinbase, which had surged to 0.25% following the launch of these funds in January.
Cryptoquant pointed out that a surge in Bitcoin’s demand growth, particularly through the Spot Bitcoin ETFs, is crucial for Bitcoin’s price recovery and the chance of achieving new highs in this market cycle.
Long-Term Holders Display Confidence in Bitcoin
Despite the dwindling demand for Bitcoin, long-term holders of the cryptocurrency remain bullish and have used the reduced prices as an opportunity to increase their Bitcoin holdings. According to Cryptoquant, these holders have been accumulating BTC at unprecedented levels, with their holdings escalating at a record-breaking monthly rate of 391,000 BTC.
Interestinły, the demand from these long-term investors is amplifying faster than in the initial quarter of the year when Bitcoin was trading near its peak, underscoring the seriousness of these investors in “buying the dip.” NewsBTC recently reported that 75% of Bitcoin’s supply, held by these long-term holders, has remained stationary for over six months despite the declining prices.
At the present time, Bitcoin is trading around $59,400, indicating a decline of over 2% in the last 24 hours based on data from CoinMarketCap.