Unlocking the Demand Potential for Bitcoin
Discover how Bitcoin’s demand is showing signs of a potential revival, as analyzed by the CryptoQuant Head of Research through on-chain data.
Bitcoin Apparent Demand Metric Indicates a Shift
Julio Moreno, in a recent analysis on X, delved into the rising demand for Bitcoin using the “Apparent Demand” metric.
- The “Apparent Demand” metric calculates the current demand for BTC by taking into account the difference between the daily block subsidy and the daily change in the one-year inactive supply.
- The daily block subsidy signifies the rewards miners receive daily, reflecting the new Bitcoin entering circulation.
- The daily change in the 1-year inactive supply tracks the net change in one-year-old coins, indicating movement in dormant supply.
- By subtracting the change in the 1-year supply from the daily block subsidy, the Apparent Demand metric provides an estimate of the present demand for Bitcoin.
Visualizing the Trend in Bitcoin Apparent Demand
In the graph shared by Moreno, the Bitcoin Apparent Demand’s 30-day sum trend since the beginning of the year is illustrated.
- The Apparent Demand recently shifted from negative to positive, surpassing its 30-day simple moving average (SMA) during this upsurge.
- Previous instances of significant positive levels in the indicator coincided with Bitcoin’s rally to a new all-time high earlier in the year.
Implications for BTC Price
The uptick in Apparent Demand aligns with Bitcoin’s price surge, climbing from $54,000 to nearly $68,000 in recent weeks.
Hot Take: Monitoring Bitcoin’s Demand Recovery
The CryptoQuant Head of Research indicates that while the Apparent Demand metric’s reversal signals a potential bullish momentum for Bitcoin, the current value suggests that the recovery phase might still be in its early stages. It’s advisable to keep an eye on this trend in the upcoming weeks.
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