Bitcoin traders set $50,000 price target
Bitcoin's Prolonged Correction Is Driven by a Sharp Decline in Demand Across Almost All Investor Cohorts
Bitcoin price $BTC fell 5.42% in the last 24 hours to hit a new multi-week low of $57,151 on May 1. On-chain data shows that a slowdown in Bitcoin demand growth and an increase in open short positions may be responsible for the latest drop, and new lows for BTC are possible
A report from CryptoQuant attributes the recent decline in BTC to a slowdown in demand characterized by diminished growth in Bitcoin balances among permanent holders, a slowdown in demand for spot Bitcoin ETFs, and an increase in short positions in the futures market.
Data from CryptoQuant shows that demand from permanent holders (investors who only buy Bitcoin and never sell) fell by 50% in April, going from over 200,000 BTC at the end of March to around 90,000 BTC.
“Accelerated demand growth is needed for prices to bottom out and eventually recover significantly.”
