Recent data showed a sharp decline in Bitcoin demand, raising concerns about its current stability. Demand levels have reached all-time lows, and short-term holders are leaving the market.
Historic Drop in Bitcoin Demand
According to CryptoQuant, current Bitcoin demand has fallen to an all-time low of -2 million BTC. This figure reflects the relationship between supply from short-term and long-term holders. When demand is negative, it indicates that short-term holders are leaving the market faster than long-term holders can absorb.
Exodus of Short-Term Holders
The amount of Bitcoin held by short-term holders has also decreased significantly. From about 5.3 million BTC in late May, this number dropped to 4.5 million BTC in just a few weeks. This loss of 800,000 BTC among short-term holders suggests that new investors are exiting the market. Consequently, long-term holders remain dominant, and they do not add fresh demand.
Importance for the Market
The combination of record-low demand and the exodus of short-term holders indicates that the current Bitcoin rally is not supported by broad investor participation. The market relies on momentum, liquidity, and new inflows, which are rapidly diminishing, making Bitcoin's price vulnerable to changes if significant holders or institutional investments pull back and new investor interest does not materialize.
While Bitcoin may still seem strong, the market situation reveals that behind this apparent stability lie signs of weakening, which could lead to a potential correction in the future.
