According to the latest on-chain data, demand for Bitcoin, the world’s largest cryptocurrency, has been accelerating in recent days. The question here is: can this increasing pressure fuel Bitcoin’s bull run?
Can the latest spike in demand restart the lockdown?
CryptoQuant’s head of research, Julio Moreno, turned to the X platform to share an interesting on-chain observation on Bitcoin and investor appetite over the past few weeks. According to the on-chain expert, apparent BTC demand is growing at its fastest monthly pace since April 22.
This on-chain disclosure is based on the apparent demand metric, which measures the difference between the total daily subsidy of the Bitcoin block and the daily change in the amount of Bitcoin held for a year or more. This metric reflects how much BTC is in active circulation and demanded by the market.
As previously reported, apparent demand for Bitcoin has been steadily declining since April, when the price of Bitcoin hovered around the $70,000 mark. Bitcoin demand has at times trended negatively over the past six months, precipitating a relatively calm market climate.
In a report on October 2, CryptoQuant revealed that the flagship cryptocurrency could be entering a period of positive seasonal performance, especially as the Fourth quarter of all halving years is historically bullish. However, the on-chain analytics firm highlighted that increased demand is one of the critical factors that must align for the BTC price to resume its bull run.
Now that the pace of demand growth has returned to April levels, it appears that the price of Bitcoin could be preparing to rise. Therefore, there is a higher chance that the leading cryptocurrency will return to its all-time high price and potentially printing a new one in the fourth quarter of 2024.
A chart showing BTC's apparent demand and price in 2024 | Source: jjcmoreno/X
However, Moreno noted in his post that demand momentum remains negative at this time. CryptoQuant’s head of research said that although “there are still more sold than bought, the magnitude of this imbalance has reduced.”
Bitcoin price at a glance
At the time of writing, the BTC price sits just above the $63,000 mark, reflecting an increase of just 1.1% over the past 24 hours. According to data from CoinGecko, the leading cryptocurrency rose more than 2% last week.
The price of BTC holds above $63,000 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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