Is Growing Bitcoin Demand Triggering a Bull Run?
Recent on-chain data suggests a surge in demand for Bitcoin, the leading cryptocurrency. But can this increased interest revive the Bitcoin bull market?
Can Latest Demand Spur Bitcoin’s Bull Run?
Julio Moreno, CryptoQuant’s head of research, highlighted a noteworthy observation about Bitcoin’s on-chain activity and investor interest. According to Moreno, the apparent demand for BTC is accelerating at a rate not seen since April 22.
This apparent demand metric gauges the difference between Bitcoin block subsidies and the amount of BTC held for over a year. It reflects the active circulation of BTC and the market’s demand for the cryptocurrency.
Following a decline in Bitcoin demand since April, when the price peaked around $70,000, the cryptocurrency market has been relatively subdued. However, recent data suggests a resurgence in demand, hinting at a possible bull run.
A recent report from CryptoQuant indicated that Bitcoin could enter a positive seasonal phase, particularly in the fourth quarter of halving years, historically characterized by bullish trends. However, sustained demand is crucial for Bitcoin to resume its upward trajectory.
With demand levels resembling those of April, Bitcoin’s price could be primed for a significant rally, potentially reaching new all-time highs by Q4 2024.
A chart illustrating BTC's apparent demand and price in 2024 | Source: jjcmoreno/X
However, Moreno cautioned that demand momentum is currently negative, though the selling pressure has eased. While there’s still more selling activity than buying, the imbalance is less pronounced.
Bitcoin Price Update
At present, Bitcoin is trading slightly above $63,000, showing a modest 24-hour increase of 1.1%. Over the past week, the cryptocurrency has risen by more than 2%, as per CoinGecko data.
BTC maintains its position above $63,000 on the daily chart | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
In conclusion, the increasing demand for Bitcoin hints at a potential resurgence in the cryptocurrency’s price. As historical trends and on-chain data align, there’s optimism for Bitcoin’s future performance. Investors should monitor demand metrics closely for any signs of a sustained bull market. Stay informed and stay ahead in the dynamic world of cryptocurrency.
