Low Spot Demand for Bitcoin Despite Recent Price Rally

Bitcoin (BTC) is seeing a decline in spot demand despite a recent price rally, with a drop of 146K BTC in 30 days. Its demand momentum is down to the lowest recorded since October 2024, raising concerns about the sustainability of the current price increase above $90,000. Stable ETF flows further indicate reduced interest, challenging prospects for a robust bull run.

Recent analysis from CryptoQuant indicates that despite a price rally, Bitcoin (BTC) is experiencing a notable decline in spot demand. Over the last 30 days, on-chain data shows a drop of 146,000 BTC in spot demand, implying buyer retreat amidst the cryptocurrency’s recovery above the $90,000 threshold on April 22. This indicates weak underlying buying interest, contrasting sharply with the price spikes.

While Bitcoin’s price surged from $87,031 to a high of $91,700, data from CoinMarketCap reveals a 4.85% increase in price alongside a 10.26% rise in trading volume. However, the broad demand momentum, which evaluates new investor activity against existing holders, plummeted by 642,000 BTC; the lowest level since October 2024. This decline raises fears regarding the asset’s long-term return potential.

The analytics firm has highlighted that such demand decreases typically threaten the viability of Bitcoin’s bull run. Historical patterns demonstrate price appreciation is frequently reliant on increasing demand and positive momentum. Therefore, unless spot demand and demand momentum rebound into stable growth, a sustained rally appears unlikely.

Further analysis shows stability in U.S.-based Bitcoin ETF flows, which have fluctuated minimally between -5,000 and +3,000 BTC per day since late March. Although Bitcoin maintains robustness in various metrics, the diminishing demand momentum suggests a stark reduction in interest compared to prior bullish cycles. This development poses concerns for current investors hoping for significant future price gains.