CryptoQuant Reports Weakening BTC Demand Metrics, Slowing Whale Accumulation
CryptoNewsTerminal Staff20 Aug, 2024
CryptoQuant Reports Weakening BTC Demand Metrics, Slowing Whale Accumulation
CryptoQuant's recent weekly report highlights a concerning trend in the Bitcoin (BTC) market. According to the report, "most Bitcoin (BTC) demand metrics are showing weakness." One key metric analyzed is the monthly BTC balance change of whales, which has slowed down to 1% in March compared to 6% in February. CryptoQuant notes that "generally, BTC price rallies when this metric is above 3%." Additionally, the monthly netflow into the U.S. BTC spot ETF has decreased since March. This indicates a decline in institutional interest in BTC in the short term. Despite the slowdown in BTC demand, there is a silver lining. The supply held by long-term holders of BTC has been increasing rapidly over the last quarter. This suggests that while short-term demand may be waning, long-term investors remain bullish on BTC. Overall, the CryptoQuant report paints a mixed picture of the BTC market. While demand metrics are weakening, long-term holders continue to accumulate BTC. It remains to be seen whether this long-term accumulation will be enough to offset the decline in short-term demand.
