Bitcoin Demand Plunges as Price Rises
Bitcoin's recent price surge is at odds with its dwindling demand. According to an analyst, demand has worsened over the past month, with a combined value of minus 171,000 BTC in futures and spot markets. This trend contradicts the cryptocurrency's 13% rise over the same period.
The disparity between price and demand indicators raises questions about the sustainability of the recent rally. The analysis suggests that internal supply-demand conditions and price moves are no longer aligned. Spot demand remains in negative territory despite continued inflows into spot Bitcoin exchange-traded funds, further exacerbating the gap.
Futures demand has cooled rapidly, plummeting from 164,000 BTC to 3,000 BTC over the past month. This sharp drop could signal a cooling of short-term speculative money. However, it is unclear whether this demand weakness directly contributed to the price correction.