Crypto

Bitcoin Demand Recovers, Yet Quant Cautions Against Calling It a Reversal

In-Depth Analysis: Current Trends in Bitcoin’s Apparent Demand

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Understanding the Recent Shift in Bitcoin’s Apparent Demand

According to a recent analysis on CryptoQuant, Bitcoin’s Apparent Demand metric has been on the rise, yet a definitive trend reversal remains unconfirmed. This indicator provides insight into Bitcoin’s demand dynamics by comparing production levels with inventory changes.

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Deciphering Bitcoin’s Production and Inventory

Bitcoin production is quantified by the rewards miners receive for solving network blocks, known as issuance. To measure Bitcoin’s inventory, analysts focus on dormant supply that’s been inactive for over a year. A positive Apparent Demand value indicates greater inventory reduction than production, suggesting robust demand as coins move out of storage. Conversely, a negative value implies increased inventory, potentially due to waning demand.

Analyzing Recent Trends in Bitcoin’s Apparent Demand

Recent data reveals fluctuating trends in Bitcoin’s Apparent Demand. In late 2024, demand surged, reflected in positive metric values. However, early 2025 saw a decline, with a shift to negative values in March. Currently, the metric is rising again, hinting at a possible market behavior shift, though experts caution against interpreting this as a definitive bullish phase.

Historical Context and Current Observations

Reflecting on previous cycles, such as the 2021 trend, offers valuable context. During that period, the Apparent Demand turned negative as the market peaked, but then rebounded by mid-2022, despite ongoing bearish conditions. This suggests that while the current rise is noteworthy, it may merely be a temporary relief rather than a clear signal of market accumulation or a macroeconomic bottom.

Current Bitcoin Price Analysis

In contrast to previous rebounds, Bitcoin’s current recovery has shown resilience, maintaining a price around $85,000. This stability indicates a potential shift in market sentiment, yet it’s crucial to consider broader market conditions before drawing conclusions.

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Emma Horvath

After graduating Communication and Media Studies MA in Eötvös Loránd University, Emma started to realize that her childhood dream as a creative news reporter committed to find dynamic journalism stories. I'm a passionate journalist with a keen interest in the fast-evolving world of cryptocurrencies. I've been reporting on the latest developments in the crypto industry for several years now, covering breaking news and providing insights on how the market is trending. I'm adept at analyzing daily market movements, researching ICOs, and keeping track of the latest innovations in blockchain technology. My expertise in the space makes her a trusted voice in the crypto community. Whether it's the latest Bitcoin price movements or the launch of a new DeFi platform, I am always at the forefront, bringing her readers the most up-to-date and informative news.

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