Due to the news of lower than expected inflation rate in the USA, Bitcoin (BTC) price exceeded the $60,000 level and rose to the $67,000 region. According to CryptoQuant's latest weekly report, Bitcoin's recent rally was also supported by the recent decline in selling pressure. However, the demand for cryptocurrency has not increased yet.
Bitcoin selling pressure has seen a decline in on-chain activity from short-term holders and balances on over-the-counter (OTC) desks. The balance of BTC on OTC desks has stabilized since late April, indicating less supply of Bitcoin from market participants.
On the other hand, Bitcoin demand appears to have stabilized after a month of slowdown. The increase in BTC balances of permanent holders and large investors indicates higher demand from these market participants. However, BTC demand needs to increase further for the market to sustain its recent price rally. This demand could come from the spot Bitcoin exchange-traded fund (ETF) market and other Bitcoin investment funds.
Stablecoin liquidity growth is also increasing, indicating a potential bullish move for BTC. 📈🚀