Apparent demand for Bitcoin has reached its lowest level in 2025, dropping into negative territory as macroeconomic uncertainty causes traders and investors to approach risk-on assets with caution.
Decline in Bitcoin Demand
According to CryptoQuant, Bitcoin demand has dropped to a negative 142 in March 2025. Demand was positive until March despite peaking in December 2024. Factors such as trade wars and inflation prompt investors to focus on safer assets.
Impact on Crypto Markets
Macroeconomic uncertainty has led to a downturn in crypto markets. Crypto ETFs have seen four weeks of continuous outflows starting in February as investors turn to safer investments. Poor market sentiment and fears of recession exacerbate the situation.
Current Bitcoin Metrics
The price of Bitcoin has declined by over 22% and is trading below its 200-day exponential moving average. According to analysts, Bitcoin's current volatility is high. Analyst Matthew Hyland believes Bitcoin needs to close at least at $89,000 to avoid further correction.
Current macroeconomic conditions significantly impact crypto markets, with investors adopting more conservative strategies fearing further upheavals.
