Bitcoin Demand Deficit Narrows to Just 5K BTC
Bitcoin's demand deficit has narrowed from a staggering -206,000 BTC in July to just -5,000 BTC. This significant improvement indicates that market optimism is increasing and buying pressure is returning.
Historically, when positive demand transitions occur, the median return over the following 60 days has been 18.1%, with positive returns occurring in 78% of cases. However, it's essential to note that this historical performance does not guarantee future outcomes.
The improvement in demand is not limited to spot activity alone, as perpetual futures demand has also returned above zero. This crossover diverges from previous instances where futures demand strengthened while spot demand remained negative.
Convinced buyers have been accumulating during the decline, with their largest increase appearing around January's drop toward $60,000. Momentum buyers, on the other hand, reduced their share sharply.