Bitcoin Spot Demand Growing For First Time Since | Crypto News
CryptoQuant’s head of research has revealed how the “Apparent Demand” metric is now displaying growth for the first time in more than a month.
Bitcoin Apparent Demand Has Flipped Positive Recently
In a new post on X, Julio Moreno, head of research at on-chain analytics firm CryptoQuant, has talked about the latest development in the Apparent Demand for Bitcoin. This metric measures, as its title suggests, the quantity of spot demand that’s presently current for the cryptocurrency.
The indicator’s worth is calculated by taking the distinction between BTC’s manufacturing and adjustments in its stock. “Production” right here refers to the quantity that miners are introducing into circulation each day. Similarly, the asset’s “inventory” is the quantity stashed away in the 1-year inactive provide.
Now, right here is the chart shared by Moreno that reveals how the 30-day sum of the Apparent Demand has modified over the last few months:
As displayed in the above graph, the 30-day sum of the Bitcoin Apparent Demand fell into the unfavourable territory last month, suggesting demand for the asset was lowering.
Recently, however, the metric has witnessed a sharp surge back into the constructive territory. Thus, it could seem that, for the first time since early October, demand for BTC is growing again.
While spot shopping for demand could also be growing now, consideration over in the perpetual futures market is down. As on-chain analytics firm Glassnode has identified in an X post, the Bitcoin Futures Open Interest has remained at low ranges since last month’s leverage flush.
The Futures Open Interest right here refers to an indicator that retains observe of the full quantity of perpetual futures positions associated to Bitcoin that are presently open on all centralized exchanges. From the chart, it’s seen this metric noticed a big plunge in October as the drawdown in the BTC price liquidated a large quantity of positions.
The indicator has remained at its lows since this decline, indicating that there isn’t a lot speculative buildup occurring in the market. “Derivatives activity has slowed materially, mirroring the broader backdrop of subdued market sentiment,” famous Glassnode.
Another aspect of the sector where demand has been weak is the US spot exchange-traded funds (ETFs).
As the chart shared by Glassnode in a separate X post reveals, the US Bitcoin spot ETFs have principally seen outflows since early October. “This trend points to a broader de-risking phase among ETF investors,” explained the analytics firm.
BTC Price
Bitcoin has retraced some of its latest recovery as its price has come down to $103,200.
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