According to the latest on-chain data, the demand for Bitcoin, the world’s largest cryptocurrency, has been increasing rapidly over the past few days. The question here is – can this mounting pressure jump the Bitcoin bull run?
Could the Recent Demand Spike Restart the Bull?
CryptoQuant head of research Julio Moreno took to the X site to share some interesting observations about Bitcoin and investor interest over the past few weeks. According to on-chain experts, the apparent demand for BTC is increasing at its monthly pace since April 22.
This on-chain revelation is based on a transparent demand metric, which measures the difference between the daily sum of Bitcoin block subsidy and the daily change in the value of Bitcoin held for one year or more. This metric shows how much BTC is being circulated and demanded by the market.
As previously reported, the virtual demand for Bitcoin has been slowly deteriorating since April when the price of Bitcoin hovered around the $70,000 mark. The demand for Bitcoin has sometimes turned negative in the last six months, creating a quiet climate in the market.
In a report on October 2, CryptoQuant pointed out that the flagship cryptocurrency may be entering a period of seasonal performance, especially since the Q4 of every half-year is historically volatile. However, the on-chain analytics company highlighted that growing demand is one of the key factors that should align with the price of BTC to resume its bull run.
With the pace of demand growth now back at April levels, it appears that the price of Bitcoin may be poised to run higher. Therefore, there is a high probability that the first cryptocurrency returns to its high value and may print a new one in Q4 2024.
A chart showing BTC's apparent demand and price in 2024 | Source: jjcmoreno/X
However, Moreno noted in his post that demand momentum remains negative for now. The head of research CryptoQuant said that although “there is still more selling than buying, the scale of this imbalance has decreased.”
Bitcoin Price At A Glance
As of this writing, the price of BTC is sitting above the $63,000 mark, showing just a 1.1% increase in the last 24 hours. According to data from CoinGecko, the first cryptocurrency rose more than 2% in the past week.
The price of BTC holds above $63,000 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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