According to the latest on-chain data, demand for Bitcoin, the world’s largest cryptocurrency, has increased over the past few days. The question is – can this growing pressure spark a bull market in Bitcoin?
Could the latest spike in demand reignite the bull run?
CryptoQuant’s head of research, Julio Moreno, took on the X platform participation captivating on-chain observation regarding Bitcoin and investor appetite over the last few weeks. According to an on-chain expert, the apparent demand for BTC has been growing at the fastest monthly rate since April 22.
This on-chain discovery is based on the apparent demand metric, which measures the difference between the daily total Bitcoin block subsidy and the daily change in the amount of Bitcoin held for a year or more. This indicator reflects how much BTC is in vigorous circulation and in demand by the market.
As previously reported, the apparent demand for Bitcoin has been steadily dwindling since April, when the price of Bitcoin was hovering around the $70,000 level. Over the past six months, demand for Bitcoin has shown a downward trend at times, resulting in a relatively peaceful market atmosphere.
In an October 2 report, CryptoQuant revealed that the flagship cryptocurrency may be entering a period of positive seasonal performance, especially since the fourth quarter of all halving years is historically bullish. However, the on-chain analytics firm stressed that rising demand is one of the key factors that need to adjust for the BTC price to resume its bull run.
With the rate of demand growth now back to April levels, it appears that Bitcoin’s price may be headed higher. Therefore, there is a greater likelihood that the major cryptocurrency will return to its all-time high price and potentially print a modern 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 dynamics currently remain negative. CryptoQuant’s head of research said that while “there is still more selling than buying, the scale of this imbalance has decreased.”
Bitcoin price at a glance
At the time of writing, BTC is trading just above the $63,000 mark, reflecting just a 1.1% gain over the last 24 hours. According to CoinGecko data, the most essential cryptocurrency increased by over 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
