Bitcoin Demand Drops to Six-Year Low, Volatility on the Horizon

CryptoQuant has reported a significant drop in bitcoin demand over the past month, with nearly 650,000 BTC in aggregate demand lost across both the spot market and perpetual futures market. This contraction is one of the most extreme since 2019, with similar readings only observed three times previously.

The data suggests that bitcoin is attracting fewer new buyers and has less capacity to absorb additional selling pressure. Analysts believe this market structure could lead to a short-term spike in volatility followed by a prolonged period of weak price action and sideways movement.