The
Bitcoin
price
has
been
under
significant
bearish
pressure
in
the
past
few
weeks,
and
this
crypto
researcher
has
explained
the
role
of
demand
in
the
market
correction.
BTC
Apparent
Demand
Is
Falling
–
Cause
For
Alarm?
In
a
recent
post
on
the
X
platform,
CryptoQuant’s
head
of
research
Julio
Moreno
explained
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.
Chart showing BTC apparent demand and price | Source: jjcmoreno/X
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
long-term
investors
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
spot
exchange-traded
funds.
As
prices
are
currently
down,
it
appears
that
an
increase
in
BTC
demand
can
potentiate
the
resumption
of
the
current
bull
run.
Bitcoin
Price
At
A
Glance
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.
The price of BTC thickens around the $60,000 mark on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured
image
from
iStock,
chart
from
TradingView
Go to Source
Author: Opeyemi Sule
