Bitcoin Cycle Driven by Demand, Not Price, Says Analyst
- Julio Moreno from CryptoQuant emphasizes that Bitcoin cycles are defined by demand rather than price performance.
- The Apparent Demand indicator compares daily miner issuance against changes in the one-year dormant supply.
- Recent data shows the monthly Apparent Demand has turned negative, indicating a decline in Bitcoin demand.
- The annual Apparent Demand remains positive but is trending downward, hinting at potential future declines.
- US BTC spot ETFs have seen negative netflows recently, reflecting muted off-chain demand.
Moreno’s analysis suggests that understanding Bitcoin cycles requires focusing on demand metrics like Apparent Demand rather than just price trends. The current negative trend in monthly demand and declining annual demand could indicate bearish market conditions unless reversed.
The emphasis on demand over price highlights a crucial aspect of cryptocurrency market dynamics, where production and inventory changes significantly influence cycle transitions. Source
