Enhanced Demand for Bitcoin, Yet Persisting Bleak Market Conditions: CryptoQuant Insights
Rewritten Article:
Rectifying the recent market turbulence, Bitcoin's on-chain metrics are spontaneously indicating green signals once more.
According to the latest analysis by the on-chain analytics firm, CryptoQuant, the shrinking demand for Bitcoin in the spot market is gradually decelerating, while the decrease in apparent demand is diminishing, and crypto liquidity is expanding.
Glimpses of Renewed Demand for Bitcoin (BTC)
Over the last month, Bitcoin's apparent demand has slowed its descent by 146,000 BTC, a drastic contrast from the 311,000 BTC dip recorded on March 27. Such a trend displays that spot demand for the leading digital asset is still decreasing but at a much slower pace.
Alas, the negative demand trend for BTC has intensified. The demand momentum, which gauges BTC purchases by new investors against those by seasoned investors, has plummeted to 642,000 BTC, reaching its lowest since October of 2026.
With a scent of stagnation in the air, large investors are accumulating BTC at their slowest monthly pace since February. Their holdings have waned slightly over the past week, shedding roughly 30,000 BTC. The rate of their monthly accumulation has dropped from 2.7% at the end of March to a stagnant 0.4% at present.
Moreover, Bitcoin demand in the United States spot exchange-traded fund (ETF) market remains subdued, although the funds generated over $912 million in positive flows on April 22. These funds typically oscillate between negative inflows of -5,000 and positive inflows of +3,000 daily, in stark contrast to the inflows exceeding 8,000 that occurred in November-December when BTC soared to $100,000.
It's worth noting that U.S. spot Bitcoin ETFs have net sold 10,000 BTC so far this year, contrasting with a net purchase of 208,000 BTC by this time in 2026. CryptoQuant maintains that a sustained positive growth in demand, demand momentum, and purchases from U.S. spot ETFs are required to fuel a rally.
Bears Yet to Surrender
In addition, CryptoQuant has pointed out that prices rally sustainably only when the market cap of stablecoins, with Tether (USDT) as a proxy, grows by more than $5 billion and maintains an elevated 30-day moving average. Regrettably, this condition is yet to be met as the market cap of USDT has expanded by merely $2.9 billion in the last sixty days. Such levels of growth are insufficient to foster the crypto market liquidity necessary for a sustained rally.
While BTC traded above $94,000 at the time of writing following a 6.5% surge within 24 hours, the Bull Score Index remains below 40, suggesting that bears still maintain a firm grip on the market.
Bonus Info:The shift towards institutional involvement in the Bitcoin market, technological advancements, and regulatory clarity contribute to a growing legitimacy and market expansion[1]. On the flip side, retail activity has slowed down, demonstrating reduced interest from individual investors[3]. Macroeconomic factors, such as trade tariffs, continue to impact Bitcoin's price volatility, but the digital asset is proving its resilience in 2025[5].
In light of these trends, some predictions are upbeat, forecasting potential price targets as high as $200,000 by 2025[2]. Others suggest stabilization and possible growth beyond current levels[5].
Overall, the ongoing shift towards institutional investment, coupled with technological advancements and regulatory clarity, is likely driving a resilient market and fostering optimistic predictions for future price increases[1][5].
- The recent decrease in the demand for Bitcoin in the spot market is gradually slowing, according to on-chain analytics firm CryptoQuant, which could potentially indicate a renewed demand for the cryptocurrency.
- Despite the recent market turbulence, Bitcoin's on-chain metrics have been showing green signals, suggesting a potential strengthening of demand for the digital asset.
- large investors are accumulating Bitcoin at their slowest monthly pace since February, indicating a slowdown in their purchase of the cryptocurrency.
- BTC's demand momentum, which measures BTC purchases by new investors against those by seasoned investors, has plummeted to its lowest since October of 2026, signaling a negative trend for Bitcoin.
- The average growth in demand, demand momentum, and purchases from U.S. spot Bitcoin ETFs are required to fuel a rally, according to CryptoQuant, but so far this year, these funds have net sold 10,000 BTC, contrasting with a net purchase of 208,000 BTC by the same time in 2026.
