What happened?
Bitcoin’s recent momentum is stabilizing, but demand hasn’t significantly rebounded yet, according to CryptoQuant. The decline in Bitcoin’s spot demand has slowed compared to a more significant drop in March. However, overall demand momentum has worsened, showing the most considerable downturn since October 2024.
Who does this affect?
These developments primarily impact Bitcoin investors and traders who rely on market demand and momentum for decision-making. Institutional investors are also affected as their participation via ETFs has plateaued, reflecting diminished interest. Large Bitcoin holders are reducing their positions, indicating a shift in sentiment among significant market players.
Why does this matter?
The lack of rebound in Bitcoin demand is crucial as it suggests hesitation among investors, which affects market sentiment and prices. The slowed ETF inflows and reduced holdings by large investors signal weakened institutional interest, which could hinder upward price movements. The crypto liquidity expansion is below expectations, adding to the ongoing constraints that prevent a strong rally in Bitcoin prices.