Recent on-chain analysis indicates a notable resurgence in the demand for Bitcoin, evidenced by the Apparent Demand metric experiencing growth after a prolonged period of stagnation since late November.
Resurgence in Bitcoin Apparent Demand Signals Market Shifts
According to a recent update from crypto analyst Julio Moreno, significant developments in the Apparent Demand of Bitcoin have emerged. This useful on-chain metric evaluates the current spot demand for Bitcoin by intersecting two key figures: the daily mining activity and the fluctuations in the supply of coins that have remained untouched for more than a year.
The mining issuance refers to the quantity of Bitcoin that miners successfully generate daily through their ongoing operations. This figure can be viewed as a gauge of overall production in the Bitcoin ecosystem. Conversely, the 1-year inactive supply indicates the total amount of Bitcoin that has not moved for a minimum of 365 days, serving as a representation of the cryptocurrency’s overall supply.
When the Apparent Demand metric registers positive levels, it signifies that the rate of decrease in inactive supply surpasses the daily production, indicating a potential uptick in demand for Bitcoin. In contrast, negative values suggest that Bitcoin is being accumulated and stored, often as a result of diminished trading activity.
The following chart, shared by Moreno, illustrates the recent fluctuations in the 30-day sum of Bitcoin’s Apparent Demand:
The graph indicates that Bitcoin’s Apparent Demand significantly dropped into negative territory in December, suggesting diminished interest in the cryptocurrency. This trend continued into January but began to reverse in the latter part of that month.
The metric hovered around slightly negative values throughout February; however, a recent uptick suggests a resurgence in spot demand for Bitcoin. As Moreno remarked, “Bitcoin spot demand is growing for the first time since late November.” The current positive reading is modest, leaving market participants eager to see if this trend will continue.
Additionally, the Coinbase Premium Index has also recently shifted to a positive position for Bitcoin, as highlighted by CryptoQuant founder Ki Young Ju in a recent update.
The Coinbase Premium Index measures the discrepancy between Bitcoin prices on Coinbase (USD pair) and Binance (USDT pair). This difference reflects variances in trading behaviors between users in the United States and the more global base of Binance.
The chart illustrates that this metric has surged into positive territory, correlating with the latest price rally, potentially indicating institutional accumulation from American investors.
Current BTC Market Price Analysis
As of the latest updates, Bitcoin is trading around $68,000, reflecting a 4% increase within the past 24 hours.
