Bitcoin has seen a rally above the $71,000 level in the past day as on-chain data shows demand for the coin has increased significantly.
Virtual Demand for Bitcoin Has Increased to Significant Levels Recently
As explained the CryptoQuant Quicktake post analystThe demand for Bitcoin has been seen to increase again recently. The on-chain metric of interest here is “Visible Demand,” which tracks the difference between BTC production and changes in your inventory.
The only way to generate BTC is to add new blocks to the chain and receive block grants as compensation, so asset production is measured by the amount miners receive in rewards every day, known as Withdrawals.
BTC’s ‘inventory’ can be considered part of its circulating supply, which has been around for over a year. Therefore, the changes in the inventory will be the total number of tokens that mature or come out of this group.
Now, here is a chart showing the trend of Bitcoin Apparent Demand since the beginning of the year 2024:
The value of the metric appears to have been positive during the last few weeks | Source: CryptoQuant
As shown in the graph above, Bitcoin Apparent Demand dropped to levels around the neutral mark during the previous consolidation phase the asset had gone through. However, recently, its value has increased to very noticeable levels.
After the increase, the index has reached the highest level as in February this year. From the chart, it can be seen that what followed back then was BTC’s rally to an all-time high (ATH).
So far, the latest burst of demand has been accompanied by a new rally in the price of the cryptocurrency, which has taken assets above the $72,000 level. Given the trend that occurred in the first half of the year, it is possible that BTC could enjoy further gains if Apparent Demand continues its growth.
In other news, Bitcoin Energy Value recently crossed the $100,000 level, as Capriole Investments founder Charles Edwards explained in an X post.
“Energy Value” here refers to a cryptocurrency model that calculates its fair value as a function of the amount of energy (measured in Joules) used to generate it. The power here is naturally the same that miners use to power their computing machines, to mine BTC.
Here is the metric chart shared by the analyst:
The trend in the BTC Energy Value over the coin's history | Source: @caprioleio on X
The graph shows that this is the first time that Bitcoin Energy Value has broken above this level.
BTC price
At the time of writing, Bitcoin is trading around $72,400, up nearly 8% over the past week.
Looks like the price of the coin has shot up over the last 24 hours | Source: BTCUSDT on TradingView
Featured image from Dall-E, CryptoQuant.com, Capriole.com, chart from TradingView.com
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