Bitcoin Demand Surges: What It Means for the Crypto Market
Recent on-chain data reveals a positive shift in Bitcoin’s ‘Apparent Demand’ indicator, a key metric with potential implications for the cryptocurrency’s price.
Bitcoin Demand Shows Positive Trend
According to an analysis by Ki Young Ju, CEO of CryptoQuant, Bitcoin’s Apparent Demand indicator has seen a noticeable uptick, signaling increased interest in the digital asset.
Apparent Demand measures the balance between Bitcoin production (mining issuance) and changes in inventory (coins inactive for over a year). When production is outpaced by a reduction in inactive supply, it suggests growing demand for Bitcoin.
During Bitcoin’s rally to its all-time high earlier this year, the Apparent Demand indicator hit significantly positive levels, reflecting strong interest. However, during the subsequent consolidation phase, demand cooled, leading to more neutral values.
Now, recent data shows a resurgence in Apparent Demand, though not yet reaching the highs of the previous rally. This increase indicates renewed interest in Bitcoin, which could drive its price higher.
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New Investors Fueling Bitcoin Demand
Another bullish signal comes from the Realized Cap metric, which tracks the total capital invested by all Bitcoin holders. Notably, new investors—those who have recently entered the market—have increased their capital allocation to Bitcoin by 3% over the past 10 days.
This influx of fresh capital from new investors points to growing confidence in Bitcoin’s potential for future growth.
Bitcoin Price Update
As of the latest data, Bitcoin approached the $68,000 mark before pulling back slightly to around $66,100. The market remains dynamic, with price fluctuations expected as demand and investor sentiment continue to evolve.
Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
The post Bitcoin Demand Surges: What It Means for the Crypto Market appeared first on Cryptocurrency News & Trading Tips – Crypto Blog by Changelly.
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