Negative Demand Signals Potential Further Decline in Bitcoin Price
Bitcoin's demand has turned negative once again, raising concerns about a further decline in price. According to data from CryptoQuant, the 30-day demand indicator briefly recovered in August but has since fallen back into negative territory. This means that active supply is increasing faster than fresh demand can absorb.
The average demand had remained negative through most of this year, with June recording the highest contraction of around 270,000 BTC when Bitcoin traded near $58,000 to $65,000. The indicator compares newly issued BTC with older supply returning to active circulation, providing insight into whether buyers are absorbing new supply or not.
The recent failure to hold above its multi-month high near $82,000 and the subsequent retreat to around $76,600 have added pressure on Bitcoin's price. Financial conditions also played a role in this period, with the U.S. 10-year Treasury yield reaching about 4.784% amid hawkish Federal Reserve expectations.
The immediate support zone for Bitcoin sits around $77,000, and a break below this level could expose $74,000 and $72,000 as the next downside levels. A sustained recovery would require demand to move back toward zero and turn positive again, signaling that fresh buyers are absorbing returning supply.