Bitcoin Apparent Demand Declines as Market Faces Supply Pressure
Bitcoin's recent demand is decreasing after reaching an all-time high of $111,970 on May 22. An analysis from CryptoQuant shows that the Bitcoin Apparent Demand has been declining for the past month and has entered a demand deficit for the first time in two months.
- The negative reading indicates that sales from miners and long-term holders exceed new buyer purchases.
- The Apparent Demand measures market demand against newly mined coins and sales from long-term holders.
- This situation not only neutralizes buying demand but also increases selling pressure as the indicator declines further.
CEX Outflows and Accumulation
- Despite the demand decline, Bitcoin experienced strong accumulation as the Apparent Demand was positive over the last two months.
- Top crypto exchanges reported a net outflow of 108,748 BTC (approximately $11.8 billion) in the last 30 days.
- Kraken led with an outflow of 34,075 BTC, followed by Coinbase with 33,196 BTC and Binance with 30,247 BTC.
- These outflows suggest long-term investors are accumulating Bitcoin due to perceived upward potential.
- Bitcoin remains near $108,000, just 3% below its ATH, despite bearish trends from geopolitical events.
- The current demand deficit may indicate a local top, potentially leading to a market-wide correction if the indicator does not improve.