Bitcoin has experienced a significant rally, surpassing the $71,000 mark as on-chain data indicates a remarkable increase in demand for the cryptocurrency. This upward trend has captured the attention of analysts and investors alike, suggesting a potential continuation of Bitcoin’s bullish momentum.
Apparent Demand for Bitcoin Experiences Significant Growth
According to a recent analysis shared in a CryptoQuant Quicktake post, there has been a noticeable uptick in the demand for Bitcoin. The focus of this analysis is the “Apparent Demand,” an on-chain metric that measures the gap between Bitcoin production and changes in its inventory.
The production of Bitcoin is solely dependent on the addition of new blocks to the blockchain, with miners receiving block subsidies as rewards. This process is also known as Issuance, representing the daily amount of Bitcoin that miners acquire.
Bitcoin’s ‘inventory,’ on the other hand, is part of its circulating supply that has remained unmoved for over a year. The fluctuations in this inventory reflect the net number of tokens transitioning into or out of this dormant category.
Tracking the Surge in Bitcoin’s Apparent Demand
The chart below illustrates the trend in Bitcoin’s Apparent Demand since the beginning of 2024:
As observed in the chart, Bitcoin’s Apparent Demand had dwindled to levels near neutrality during an earlier consolidation phase. However, it has recently surged to significantly positive levels, mirroring the peak observed back in February of this year. Notably, the previous surge was followed by Bitcoin reaching a new all-time high (ATH).
Currently, the renewed demand has coincided with a fresh rally in Bitcoin’s price, propelling the asset beyond the $72,000 threshold. Given the similar pattern observed earlier in the year, there is potential for Bitcoin to experience further gains if the Apparent Demand continues its upward trajectory.
Bitcoin’s Energy Value Crosses a Landmark
In other developments, the Bitcoin Energy Value has recently surpassed the $100,000 mark, as highlighted by Charles Edwards, founder of Capriole Investments, in a post on X. The “Energy Value” model estimates Bitcoin’s fair value based on the amount of energy, measured in Joules, expended for its production. This energy is crucial as miners utilize it to power their computing devices for Bitcoin mining operations.
The chart shared by the analyst illustrates the progression of the BTC Energy Value throughout the cryptocurrency’s history, marking its first breakthrough beyond this significant level.
Current Bitcoin Price Overview
At the time of writing, Bitcoin is trading around $72,400, reflecting a nearly 8% increase over the past week. The coin’s price has notably surged in the last 24 hours, capturing the interest of traders and market participants.
As Bitcoin continues to attract attention and exhibit strong performance, investors and enthusiasts remain vigilant for further developments in its market trajectory.
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