Bitcoin experienced a price surge surpassing $90,000, but on-chain data reveals a decline in demand, with a drop of 146,000 BTC over 30 days. Investor momentum has reached a low not seen since October 2024, with ETF flows remaining stagnant. Analysts warn that without a rebound in demand, the sustainability of the rally is at risk.
Bitcoin (BTC) recently surpassed the key price level of $90,000, peaking at $91,700 on April 22. However, this impressive rally is being overshadowed by a decline in on-chain demand. Reports from CryptoQuant indicate that Bitcoin’s spot demand has decreased by 146,000 BTC over the last month, highlighting potential issues with the sustainability of the price increase, despite a 10.26% rise in trading volume and a 4.85% appreciation in price.
The analysis reveals that demand momentum, which tracks net activity from new investors, has plummeted by 642,000 BTC. This metric has reached its lowest level since October 2024, suggesting a notable hesitance among potential investors, even as Bitcoin currently leads the market’s upward movement.
CryptoQuant underscores the importance of both spot demand and investor momentum for the longevity of Bitcoin’s rally. Historically, robust bull markets correlate with rising demand figures. The current divergence between price rise and demand escalation serves as a significant warning signal for potential market stagnation.
Additionally, Bitcoin ETF flows in the U.S. have shown little change since late March, fluctuating between -5,000 and +3,000 BTC daily. This static movement reflects a lack of robust institutional interest, contributing to the prevailing cautious atmosphere among investors.
While Bitcoin continues to exhibit strong pricing and volume metrics, the diminishing demand from both retail and institutional segments diverges from historical bullish trends. Analysts caution that without renewed investor interest and improved market fundamentals, Bitcoin may find it challenging to continue its upward trajectory. Experts advise keen observation of demand conditions to foresee potential developments in Bitcoin’s price movement.
