Bitcoin Demand Dries Up as Market Faces Prolonged Volatility

The Bitcoin market is facing a significant challenge as demand for the cryptocurrency dries up. According to CryptoQuant analyst Moreno, the 30-day combined growth of spot and perpetual futures demand has fallen to around -650,000 BTC, a reading that has appeared only three times since 2019.

This level of contraction in demand typically marks the beginning of a difficult stretch for Bitcoin, rather than the end of one. Moreno believes that the current setup looks more like the start of a final cleansing phase than a confirmed turning point.

The market analyst also pointed out that the previous instances when demand contracted to this extent were followed by further price declines. In December 2019, for example, Bitcoin's prices collapsed further in March 2020 after hitting an extreme contraction in demand.