Bitcoin Spot Demand Surges for First Time Since Early October: A Turning Point?
After a month of subdued interest, Bitcoin's spot demand is showing promising signs of revival. Recent analysis from CryptoQuant's head of research, Julio Moreno, reveals that the "Apparent Demand" metric has flipped positive, marking a significant shift in market sentiment not observed since early October. This development provides a fresh perspective on the cryptocurrency's market health.
Apparent Demand Signals a Shift
The "Apparent Demand" metric, a crucial indicator for gauging real-time spot interest in Bitcoin, is calculated by assessing the difference between newly produced BTC by miners and the changes in its 1-year inactive supply (coins that have remained untouched). After a period of decline and remaining in negative territory throughout the previous month, the 30-day sum of this metric has now sharply rebounded into positive figures. This notable surge suggests a renewed and growing appetite for Bitcoin on the spot market, indicating that buyers are once again actively engaging.
Broader Market Sentiment: A Mixed Picture
While the resurgence in spot demand offers a hopeful outlook, other key segments of the Bitcoin market present a more cautious and mixed picture. Data from on-chain analytics firm Glassnode indicates that Bitcoin Futures Open Interest continues to linger at depressed levels. This follows a substantial "leverage flush" in October, which saw a mass liquidation of leveraged positions. Such low futures activity points to a lack of significant speculative buildup in the derivatives market. Additionally, US Bitcoin spot Exchange-Traded Funds (ETFs) have predominantly experienced outflows since early October, a trend Glassnode interprets as a "de-risking phase" among institutional ETF investors.
Bitcoin's Current Price Action
Amidst these evolving demand dynamics, Bitcoin's price has seen a retracement from its recent recovery peaks, currently hovering around the $103,200 mark. This price movement underscores the complex interplay between a recovering spot market and more conservative sentiment within the derivatives and ETF sectors. Market participants are closely monitoring whether the renewed interest in spot buying can translate into a sustained upward trajectory for the leading cryptocurrency.
