A recent report from the analytics firm CryptoQuant shows a decline in Bitcoin demand, which may impact its price in the near future.
Trends in Decreasing Bitcoin Demand
According to the CryptoQuant report dated June 19, a significant decline in Bitcoin demand is observed. Key indicators include:
- **Decrease in ETF Inflows**: Inflows into Bitcoin ETFs have dropped by more than 60% since their peak activity in April. - **Halved Whale Accumulation**: Large holders of Bitcoin, known as whales, have reduced their buying activity. - **Selling by Short-Term Holders**: Approximately 800,000 BTC were sold by short-term holders since late May, indicating a general loss of confidence in the market.
Bitcoin Price Forecast
CryptoQuant's analysis suggests that if the current drop in demand continues, Bitcoin's price could face significant downward pressure. They forecast that if conditions remain as they are, Bitcoin's price may retreat to support levels around $92,000 and, in a more bearish scenario, even $81,000.
Importance of ETF Inflows for the Market
Inflows into Bitcoin ETFs play a crucial role in shaping demand for the asset. Initially, substantial inflows supported the price growth of Bitcoin, but the recent decline of over 60% indicates a temporary weakening of investor interest. This highlights the necessity of support from institutional and retail investors for sustainable growth.
The latest data from CryptoQuant highlights softening demand for Bitcoin, which may lead to weakening prices. The decrease in demand levels presented in the report compels market participants to closely monitor these indicators in light of future price fluctuations.
