Bitcoin is trading below the $100K mark after a rollercoaster of a week, marked by intense volatility and sustained selling pressure. Last Sunday, the cryptocurrency faced extreme market turbulence, dropping over 9% in less than 24 hours. While BTC managed a recovery bounce on Monday, the selling pressure has not subsided, leaving the market uncertain about its next direction.
Amid this turbulent price action, key metrics highlight a critical relationship between Bitcoin’s performance and demand growth. CryptoQuant’s Head of Research, Julio Moreno, shared insights on X, revealing that Bitcoin’s price return is closely tied to its demand growth. Moreno emphasized that slowing demand since early December has directly correlated with diminished returns, underscoring the crucial role of market participation in sustaining bullish momentum.
This observation sheds light on the current state of the market, where declining speculative appetite and weakening leveraged positions are contributing to choppy price action. As Bitcoin hovers below the $100K mark, both bulls and bears are locked in a battle for control, with demand growth serving as a pivotal factor in determining the cryptocurrency’s trajectory. With market participants closely monitoring these dynamics, the coming days could prove decisive for BTC’s short-term and long-term outlook.
Bitcoin Demand Declines As Investors Fear A Correction
Bitcoin has faced significant volatility and selling pressure since the start of February, sending ripples through the broader crypto market. Altcoins and meme coins, often more vulnerable during bearish trends, have experienced even sharper price drops, amplifying uncertainty among investors. Analysts are increasingly signaling a potential correction, citing tired bulls and bearish price action that hints at further declines.
Moreno provided key insights on X, linking Bitcoin’s price performance directly to demand growth. According to Moreno, Bitcoin’s price return closely follows the trajectory of its demand growth.
Since early December, demand growth has be
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Author: Sebastian Villafuerte
