Bitrabo Editorial
The Head of Research at CryptoQuant sheds light on the potential early stages of Bitcoin demand recovery, based on on-chain data.
Indicators of Bitcoin’s Apparent Demand Fluctuation
Julio Moreno, from CryptoQuant, delves into the growing demand for Bitcoin in a recent publication on X. The focus is on the “Apparent Demand” metric that analyzes current BTC demand by comparing two key metrics.
The first metric is the daily block subsidy, representing the block rewards miners receive daily, which showcases the new BTC entering circulation. The second metric tracks the daily net change in the one-year inactive supply of Bitcoin, indicating when coins have aged past a year or moved from dormant holdings.
By subtracting the change in the inactive supply from the daily block subsidy, the Apparent Demand offers an estimation of the current demand for Bitcoin.
Moreno shares a chart illustrating the trend of Bitcoin’s Apparent Demand over the past months:
The graph shows a recent shift from negative to positive values for Bitcoin’s Apparent Demand, surpassing the 30-day simple moving average. Previous high demand levels coincided with Bitcoin’s earlier rally to its all-time high.
This reversal in the indicator, while still at relatively low levels, could indicate a potential early phase of recovery for Bitcoin’s price, according to CryptoQuant’s analysis.
Bitcoin Price Movement
Bitcoin’s price has experienced a significant surge in recent weeks, climbing from $54,000 to nearly $68,000 amidst this recovered demand.