According to the latest on-chain data, demand for Bitcoin, the world’s largest cryptocurrency, has accelerated in recent days. The question here is: can this growing pressure reignite the Bitcoin bull run?
Can the latest demand spike restart the bull run?
Julio Moreno, Head of Research at CryptoQuant, took to Platform X to share an interesting on-chain observation about Bitcoin and investor appetite over the past few weeks. According to the on-chain expert, apparent demand for BTC is growing at its fastest monthly rate since April 22.
This on-chain revelation is based on the apparent demand metric, which measures the difference between the daily total Bitcoin block subsidy and the daily change in the amount of Bitcoin held for a year or more. This metric reflects the amount of BTC in active circulation and demanded by the market.
As previously noted, apparent demand for Bitcoin has been steadily declining since April, when the Bitcoin price was hovering around the $70,000 mark. Demand for Bitcoin has trended negatively at times over the past six months, precipitating a relatively calm market sentiment.
In an October 2 report, CryptoQuant revealed that the flagship cryptocurrency could be entering a period of positive seasonal performance, especially since the fourth quarter of all halving years is historically bullish. However, the on-chain analytics firm highlighted that increased demand is one of the critical factors that must align for BTC price to resume its uptrend.
With the pace of demand growth now back to April levels, it appears that the price of Bitcoin could be gearing up for a surge. Therefore, it is more likely that the leading cryptocurrency will return to its all-time high price and potentially 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 message that demand dynamics currently remain negative. CryptoQuant’s head of research said that while “there is still more selling than buying, the magnitude of this imbalance has lessened.”
Bitcoin Price at a Glance
At the time of writing, the BTC price sits just above the $63,000 mark, reflecting a rise of just 1.1% over the past 24 hours. According to data from CoinGecko, the leading cryptocurrency is up more than 2% over 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
