The head of research for on-chain analytics company CryptoQuant explains that demand is the foundation of Bitcoin cycles, not price.
Recent Bitcoin demand is declining
It’s a brand new world post On X, CryptoQuant’s head of research Julio Moreno discussed Bitcoin cycles through a new lens. “Most are focusing on price performance to define a cycle, when it is demand what they should be looking to,”Moreno was quoted as saying:
The analyst has evaluated the “demand”For the cryptocurrency that uses the Apparent Demand This indicator compares daily mining issuance to the change in supply over a 1-year period.
This is the first, and the most important, of the three. “minting”Receive the daily network by registering block rewards. This metric is the most important one. “production”The asset’s 1-year inactive supply can be thought of as the cryptocurrency’s “capital”. The 1-year inactive supply, on the other hand, can be thought of as the cryptocurrency’s “inventory.”
The Apparent Demand compares Bitcoin production to changes in the inventory. The chart below, shared by Moreno, shows trends for the 30-day version and the 1-year version of the Appearance Demand in the last decade.
In the graph you can see that all the previous Bitcoin cycles ended in a bear market, when both the monthly timeframe and the yearly timeframe saw the Amount of Demand fall into the negative area.
The 30-day apparent demand has recently plunged in the red zone, indicating that the monthly demands for the assets have been negative.
The metric’s value is in a downward trend on an annual basis, although it remains positive. If this decline keeps up, it won’t be long before the indicator has dipped into the negative territory.
The current Apparent Demand structure is bearish when compared to the patterns of previous cycles. The yearly version will only be known if the indicator will enter the red zone, or rebound and signal the return of consumer demand.
Spot demand isn’t the only way to measure Bitcoin demand these days. Since the introduction of exchange-traded funds (ETFs)This cycle, the demand for cryptocurrency has increased.
Glassnode, a company that provides on-chain analysis services, has discussed this in X postRecently, 30-day netflows for US BTC ETFs have remained negative, suggesting that the demand on this side has also weakened.

BTC price
Bitcoin’s price has been consolidating recently, and is currently hovering around $88,000.
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Source: www.newsbtc.com

