Bitcoin retail demand has hit the bottom, how can investors seize the opportunity?
Bitcoin retail demand has fallen to a five-month low, and the market is looking forward to the next 75% rebound?
Recently, Bitcoin's retail demand has shown a downward trend, falling to its lowest level in nearly five months. However, some market analysts believe that this may be a sign that Bitcoin prices are about to soar, similar to the situation in early 2024.
According to Axel Adler of CryptoQuant, the average monthly change rate of Bitcoin retail demand in the past 30 days was 17%. After the Bitcoin spot ETF was approved by the United States, the price of Bitcoin soared from $40,000 to $70,000. In January, Bitcoin demand fell to -18%, and then pushed Bitcoin prices to a record high of $73,679 in mid-March.
Adler also observed that Bitcoin demand fell 31% in the 17 days before May 24. He believes that this change may be related to the rising popularity of GameStop and the preliminary approval of the Ethereum spot ETF. In addition, macroeconomic factors such as the US Consumer Price Index (CPI) may also affect the demand for Bitcoin. A lower CPI may increase the appeal of Bitcoin as investors may look for other investment channels when traditional savings yields are low.
Markus Thielen of 10x Research pointed out that if the demand for Bitcoin falls to 3.3% on June 12, the price of Bitcoin may hit a new all-time high. However, on June 11, the price of Bitcoin fell below the all-time high of $69,000 in November 2021, falling 3.19% in 24 hours to trade at $67,350. According to CoinGlass data, the decline led to the liquidation of $52.87 million in Bitcoin long positions, although open interest remained above $35 billion.
Traders had expected a rebound above $70,000 after the price drop on June 8, but the price of Bitcoin did not recover as expected. Traders seem pessimistic about the recent market trend, and $2.14 billion in short positions are awaiting the CPI results on June 12. Whether the market will usher in the next wave of 75% rebound remains to be seen.
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