Bitcoin (BTC) price has spiked past $60,000 to the $67,000 region on news of lower-than-expected inflation rates in the United States.

According to the latest weekly report from CryptoQuant, bitcoin's recent price rally is also sustained by a decrease in selling pressure. However, the demand for this cryptocurrency has not increased.

Bitcoin selling pressure decreased

The decrease in BTC selling pressure can be seen in the on-chain activity of short-term holders and balances on OTC trading desks.

BTC balances on OTC trading desks have been stable since late April, indicating less bitcoin supply from market participants. Balances on OTC trading desks began increasing by 60,000 BTC on March 10 as the asset hit an all-time high of $73,000; however, it has stabilized since the end of last month.

Similarly, the profits of short-term BTC holders are currently low or negative after high profits stimulated strong selling pressure in early March. Since they have spent all the profits accumulated in 2024, traders are now facing unrealized losses. In the past, this has coincided with a local bottom in the price.

Demand has not increased

On the other hand, Bitcoin demand growth appears to be stabilizing after a month of deceleration. The increase in BTC balances of perpetual holders and large investors indicates higher demand from these market actors.

However, BTC demand needs to increase further for the market to sustain the recent price rally. Demand could come from the Bitcoin ETF exchange-traded fund market and other Bitcoin investment funds.