CryptoQuant Head Reveals Reason Behind Bearish Bitcoin Trend

Julio Moreno, CryptoQuant's research head, suggests low demand is causing Bitcoin's price decline. He examines the demand side of the market, focusing on absorbing supply from long-term holders. Long-term holders, defined as those holding BTC for over 155 days, have been selling significantly in the past month. Moreno uses the Apparent Demand metric to assess if this selling pressure is matched by buyer interest. This metric compares Bitcoin's daily issuance by miners to changes in its long-term inventory. Recently, the 30-day Bitcoin Apparent Demand has turned red, indicating negative short-term demand. This suggests that the market has not been absorbing the supply being sold at higher prices. Consequently, this lack of absorption is seen as the reason for the current price drops. While the 1-year Apparent Demand has shown some growth, its rise is slow and remains below its 90-day moving average. The last prolonged period of negative 30-day Apparent Demand coincided with a bearish market phase earlier in the year. It is yet to be seen if a similar trend will emerge or if demand will recover. Bitcoin's price has fallen by 9% in the last seven days, currently trading around $103,900.