The CryptoQuant Research Head says an unprecedented rate of demand is responsible for the recent #Bitcoin rally.
By every measure, Bitcoin has had a landmark year in 2024. Still, the asset shows no signs of slowing down, with its price continuing to record high after high. Recently, CryptoQuant Head of Research Julio Moreno has offered insight into what is driving the latest rally.
Bitcoin Seeing Record Demand
Over the past 24 hours, Bitcoin has surged to new highs near the $108,000 price point, extending its year-to-date (YTD) gains to over 150%. According to Moreno, the recent rally, which kicked off over the weekend, is driven by record demand outpacing supply.
As an example, Moreno highlighted that Bitcoin over-the-counter desks are seeing their most significant monthly balance decline this year, already down a staggering 25,000 BTC worth $2.7 billion at current prices this month. The market researcher also noted that this balance had declined by 40,000 BTC since November 20.
Meanwhile, as this supply reduces, demand continues to grow, as highlighted by the Bitcoin ‘Apparent Demand’ indicator chart shared by Moreno.
The apparent demand indicator measures the difference between newly issued Bitcoin and the inactive supply for a year. When inactive supply decreases faster than the newly issued coins, the metric turns positive, suggesting high demand. Per the chart, the apparent demand indicator has been significantly positive since the end of October 2024.
The recent trend of Bitcoin demand outpacing supply comes as several factors have investors feeling significantly optimistic about the asset.
