Viewpoint: Bitcoin Demand Rebounds After Three-Month Slump

BlockBeats News, February 21st. According to analyst Darkfost, a dynamic factor that had been suppressing Bitcoin demand is gradually shifting since the beginning of the year. On December 18th, Bitcoin's monthly cumulative on-chain demand dropped to a low of -154,000 BTC. Since then, demand has been gradually improving and has recently returned to positive territory, at around +1,200 BTC. This reversal marks the end of nearly three months of continuous negative demand and this phase has been largely responsible for the subdued price action observed so far.

The analysis points out that with the decrease in selling pressure and signs of demand improvement, Bitcoin is finally starting to send out constructive signals, provided that this trend continues over the next few weeks.

Note: On-chain demand is defined as the daily block reward minus changes in the supply inactive for over a year and is used to measure whether long-term holders are effectively absorbing newly issued bitcoins.