Bitcoin has been in no man’s land since April. No wonder: BTC demand remains weak, as a new crypto report reveals.
Bitcoin Demand Plummets: What’s Behind the Drop and How Long-Term Holders Are Responding
A recent report from data analytics firm CryptoQuant reveals a sharp decline in Bitcoin’s “visible demand.” The growth rate has plunged from a 30-day increase of 496,000 BTC in April to a negative growth of 25,000 BTC. The primary driver of this decline appears to be a significant drop in purchases by U.S. Bitcoin ETFs. Their daily BTC acquisitions have fallen from approximately 12,000 BTC in March to just 1,300 BTC between August 11 and 17.
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As of now, Bitcoin is trading at $59,380, marking a 2.84% decrease over the past 24 hours. The price has also dipped by 2.36% compared to the previous week. This continued low demand has seen Bitcoin’s price fall from around $70,000 in April to below $50,000 in early August.
Adding to the concerns, the price premium for BTC trading on Coinbase, which reached a notable 0.25% at the start of 2024, has steadily decreased to just 0.01%. This decline further highlights the waning demand for Bitcoin in the U.S. market.
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However, it’s not all bad news for Bitcoin enthusiasts. Long-term holders are taking advantage of the lower prices to accumulate more BTC. Addresses that have never spent their Bitcoin are increasing their holdings at a monthly rate of 391,000 BTC. Additionally, a new metric shows that nearly 75% of all 19.73 million Bitcoin in circulation have remained unmoved for over six months, indicating strong confidence in Bitcoin’s long-term value as a digital store of wealth.
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For those committed to Bitcoin’s future, setting up a regular savings plan through various crypto platforms might be a strategic move. This approach allows investors to steadily accumulate Bitcoin, taking advantage of its potential growth over time.
