Bitcoin Demand Turns Negative as Price Struggles with $77K
Bitcoin's price struggled to hold above $77,000 on Wednesday, as its apparent demand turned negative for the second time. According to data from CryptoQuant, the indicator measures the difference between newly mined issuance and changes in inactive supply. When the demand is positive, it means that old coins are being absorbed into the market along with new ones.
However, when the demand flips negative, it suggests that coins are aging into dormancy faster than miners issue them. In this case, Bitcoin's apparent demand turned negative again after a brief reprieve during the August rally.
The price drop to $76,400 was triggered by US spot Bitcoin exchange-traded funds (ETFs) recording outflows of $236 million the day prior. This move was also accompanied by a sharp decline in Asian equities, with South Korea's KOSPI falling 4.0% and Japan's Nikkei 225 dropping 2.9%.
The global bond rout eased slightly as the US 10-year yield briefly dipped below 4.8%, but the USD/JPY pair saw inorganic price action, leading to speculation that another central bank intervention had taken place.