Bitcoin spot demand has continued to increase, although at a slower rate, with apparent demand growth decreasing to 118,000 BTC over the month.
As Bitcoin (BTC) attempts to recover from the effects of Middle Eastern tensions, demand for the digital asset is declining. Market specialists from the on-chain intelligence business CryptoQuant have revealed that Bitcoin demand is slowing.
According to the most recent CryptoQuant weekly analysis, the fall in Bitcoin demand follows a period of acceleration that drove the price of BTC to $112,000. Demand-momentum measures are currently displaying the greatest negative readings on record, 2 million BTC.
Bitcoin demand is weakening.
CryptoQuant indicated that Bitcoin spot demand has continued to rise, albeit at a slower pace. Apparent demand growth has slowed to 118,000 BTC in the last 30 days, down from 228,000 BTC on May 27. The indicator is also lower than its 30-day moving average, indicating a decline in demand for BTC.
Bitcoin whales and spot exchange-traded funds (ETFs) have significantly reduced their purchasing. Whale balances have expanded by 1.7% month over month (MoM), down from 3.9% on May 27. Daily BTC purchases from ETFs have also decreased from an April 23 local peak of 9,700 BTC to 3,300 BTC today.
Furthermore, demand from new participants in the Bitcoin market is minimal, and the general demand momentum has shifted negatively. Short-term holders now own 4.5 million BTC, down 0.8 million from 5.3 million on May 27.
Furthermore, speculators in the futures market have sold Bitcoin to lock in profits and are now starting new short bets.
According to CryptoQuant’s Bitcoin Traders’ Behavior Dominance indicator, participants sold their coins to collect profits after BTC reached $110,000 last week. Afterward, they placed more short bets as BTC fell below $105,000 amid rising tensions between Israel and Iran.
What To Expect
For BTC to have a sustained rise, whales and spot ETFs must strengthen their demand for the cryptocurrency. New investors must also buy BTC from existing ones, increasing the balances of short-term holders.
If demand continues to weaken, BTC might fall below $100,000 and reach a support level at $92,000. The cryptocurrency asset was trading around $102,700 at the time of writing, following the US attacks on Iran.
Meanwhile, CryptoQuant has identified $92,000 as the traders’ On-chain realized price, which is frequently used as price support during bull markets. If BTC falls below this level, it may fall to $81,000, which has been identified as the lower band of the Traders’ On-chain Realized Price.
Also Read: Bitcoin Margin Trading Guide and Best Exchanges (2025 Update)
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