Bitcoin Demand Rebounds Sharply After Two Months, but Bullish Case Remains Unclear
Summary
- CryptoQuant contributor Darkfost said Bitcoin’s nominal demand had recovered to minus 32,000, a sharp improvement from minus 272,000 in early June.
- The gauge remains negative, however, meaning demand is still not strong enough to fully absorb new Bitcoin supply entering the market.
- He added that similar patterns in February and May were followed by a decline in demand, making it difficult to treat the current move alone as a strong positive signal.
Bitcoin demand is recovering quickly, though not yet enough to absorb all new supply, according to a CryptoQuant analysis.
CryptoQuant contributor Darkfost wrote on Aug. 15 that Bitcoin’s nominal demand had recovered to minus 32,000, a sharp improvement from minus 272,000 in early June.
Nominal demand is a measure of how much the market’s buying power can absorb newly supplied Bitcoin.
The gauge has improved significantly from two months ago but remains in negative territory. That means demand for Bitcoin is increasing, but not enough to fully absorb supply entering the market.
A similar pattern emerged in February and May before demand weakened again, Darkfost wrote, adding that the current move alone is not enough to qualify as a strong positive signal.
Uk Jin
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