Fastest Monthly Growth Since April 2024

Data from the CryptoQuant platform indicate that Bitcoin’s demand is at its highest since April 2024. A recent analysis shows an acceleration in the market for BTC in terms of the 30-day moving average of the daily changes in inactive supply. This metric implies a new level of market interest, which may indicate a possible shift in investor sentiment.

Key Insights 

The chart from CryptoQuant provides several takeaways regarding BTC’s recent performance. The data reveals a sharp rise in the 30-day sum of the apparent Bitcoin demand, with positive values. This increase marks the fastest monthly growth since April 2024, suggesting market players aggressively buy Bitcoin as the price surges.

The chart captures periods of negative apparent demand (in red), which indicates that net outflows or reductions in inactive Bitcoin bases were observed during that period. Although it recently transitioned to a positive trend, it may be due to an increasing confidence in Bitcoin’s worth.

The black line on the chart refers to the BTC price, which has fluctuated several times during the year. However, the recent increase in demand came when prices stabilized above $50k per Bitcoin, setting the stage for further appreciation if demand continues.

Possible Drivers of Increased Bitcoin Demand

There are several reasons for the high demand for Bitcoin in the market. This social aspect could explain why BTC is gaining more appeal. It may offer better security as clients, investors, and the overall economy continually face the uncertainties of inflation rates and a fluctuating economy. Further, optimism from big players, which comprise institutional investors and a clear regulatory framework, might have revived the market. 

Market Outlook

If the demand for BTC remains at such a level, then a new round of the bull market can come. To a large extent, such a situation in the past has characterized significant increases in the rates when a positive trend of demand accompanies the inactive supply. Still, traders will have to observe the momentum to look for the signals pointing to the fact that the market is changing for the better in the long term.