What is the Demand for Bitcoin? Is There Enough Demand for Ascension?

According to a report published by CryptoQuant Bitcoin Demand has stabilized in recent months, but stronger growth will be needed for a potential price increase in the fourth quarter.

The report emphasized that although demand showed consistent increases in September, this increase alone may not be enough to raise Bitcoin prices.

CryptoQuant calculated Bitcoin’s apparent demand as the difference between the daily Bitcoin block subsidy and the daily change in the amount of BTC that has remained unchanged for a year or more. Since July, this demand has fluctuated, ranging from a net loss of 23,000 Bitcoins to a gain of 69,000 per month. There was less volatility in September and demand increased steadily, but the report noted that this growth was not as significant as at the beginning of the year.

“For comparison, Bitcoin’s apparent demand increased by 496,000 in April, when prices approached $70,000,” the analysts explained, suggesting that demand still has “lots of room to grow” in the final quarter of 2024.

The report also noted that the behavior of Bitcoin holders in early 2024 follows patterns seen in previous halving cycles such as 2016 and 2020. Earlier in the year, long-term holders sold Bitcoin to new buyers, fueling a surge in demand. However, this trend stagnated during the summer months.

“If historical trends repeat, we could see continued demand growth, leading to a potential increase in short-term supply,” analysts predicted.

One promising area of ​​strength has been US spot Bitcoin ETFs. In September, there was a switch from net selling to net buying, and on September 30, 7,000 Bitcoins were purchased, the highest daily volume since July. The report noted that ETFs contributed to the increase in prices by purchasing approximately 9,000 Bitcoins per day in the first quarter of 2024.

*This is not investment advice.