CryptoQuant, a cryptocurrency analytics platform, said that despite the recent recovery in Bitcoin prices, there are still no strong signs of improvement in fundamental market dynamics.
According to the company’s latest assessment, Bitcoin has increased by around 30% since February 6. However, it has been argued that this recovery is not enough to mean that the market has entered a new bull cycle. The analysis specifically highlighted weakness on the demand side.
According to CryptoQuant data, “apparent demand” (30-day total) is still in negative territory, hovering around -44,700. $BTC. Although this figure represents a significant improvement from the -89,000 $BTC At the level observed at the beginning of April, this still indicates that the market has not yet generated a clear excess demand.
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The report notes that apparent demand has generally remained negative since the start of the year. The brief positive gap seen in late February was attributed to a decrease in Bitcoin production rather than a true increase in demand. Specifically, unfavorable weather conditions in the United States earlier in the year led to a significant slowdown in mining activity, temporarily limiting supply.
The analysis indicates that the “apparent demand” measure measures the difference between the quantity of newly produced goods $BTC and supply remaining dormant for more than a year, thus helping to assess whether structural accumulation in the market can respond to new supply.
In conclusion, CryptoQuant believes that despite the rise in Bitcoin price, a stronger and more sustained recovery in demand is necessary for a sustainable rally to occur. Current data suggests that the market has not yet crossed this threshold.
*This does not constitute investment advice.
