CryptoQuant says about a steady decline in demand for BTC since April

What’s new? According to a report by the analytics company CryptoQuant, demand for bitcoin has been in a downtrend since April, and this month it moved into negative territory. Expectedly, the decline in demand has had a negative impact on the price, with it dropping from $70 000 in April to $51 000 in early August. Despite the correction, BTC’s current yield is 40% since the beginning of the year.

CryptoQuant

What else is known? The drop in demand is likely due to a reduction in purchases by issuers of spot exchange-traded funds (ETFs) in the United States. For example, in March, investment companies purchased an average of 12 500 BTC daily for their products on exchanges, while from August 11 to August 17, an average of only 1300 coins.

Thus, according to CryptoQuant, the apparent demand for the asset has dropped from April’s figure of 496 000 BTC to -25 000 BTC so far. Explicit demand is defined as the difference between the total daily reward to miners for mining blocks and the daily change in asset volume.

In addition, the growth in total asset volume of large bitcoin investors has also slowed, from +6% in March (month-on-month) to + 1% currently.

Analysts also pointed to a decline in the premium for trading BTC on Coinbase, the largest US centralized crypto exchange (CEX): in January, after the launch of spot ETFs, it was 0,25%, while by now it has fallen to 0,01%. This further confirms the decline in demand for bitcoin in the United States.

According to analysts, the recovery of previous purchase volumes by BTC ETF issuers is important to boost overall demand for the asset, which could potentially lead to a corresponding increase in price.

“A recovery in spot ETF purchases is essential to drive overall Bitcoin demand upward, potentially leading to a corresponding price rally,” the company concluded.

Weekly inflow of funds into crypto derivatives amounted to 30 million dollars

The index dropped 83% in one week

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At the same time, the total balance of regular holders is growing at a record pace: 391 000 BTC per month. This category includes wallets that have never spent or sold coins.