Analyst: Bitcoin's Apparent Demand Has Been Mostly Negative This Year, But Has Recently Shown Improvement

Odaily reports that CryptoQuant analyst Darkfost stated that Bitcoin's Apparent Demand has remained in negative territory for most of this year, reflecting persistently weak market demand, which is also a key reason for the ongoing downward pressure on Bitcoin's price.

Data shows that on June 3rd, Bitcoin's Apparent Demand briefly dropped to a yearly low of -275,000 BTC, before recovering to approximately -75,000 BTC. Darkfost believes that while the improvement in demand is noteworthy, a true demand recovery still requires this indicator to consistently return to positive territory.

He explained that the Apparent Demand indicator is calculated by the difference between "new BTC issuance" and "BTC supply that has not moved for over a year." It can be used to measure whether the structural accumulation by long-term holders is sufficient to absorb the network's new supply. Currently, although long-term demand has recovered somewhat, it has not yet reached a level sufficient to drive the market into a new upward trend.