PANews reported on August 21 that according to CoinDesk, the on-chain analysis company CryptoQuant said in a report on Wednesday that the demand for Bitcoin has slowed significantly since early April, and even fell into negative territory this month. "CryptoQuant cited its demand indicator, which tracks the difference between the total daily Bitcoin block reward and the daily change in the number of Bitcoins that have not moved for a year or more. The Bitcoin rewards received by miners are usually sold to pay for operating expenses, but the increase in sales by large holders indicates that demand for the asset is weakening.
The company said: "Growth in aggregate holdings by large Bitcoin investors has also slowed, from 6% monthly in March to 1% currently. The slowdown in Bitcoin demand coincides with a reduction in U.S. spot ETF purchases. Average daily purchases of U.S. Bitcoin spot ETFs have fallen from 12,500 BTC in March to an average of 1,300 BTC last week."
However, CryptoQuant noted that some indicators remain strong during the price weakness. Long-term holders (i.e. wallets that have held the asset for more than six months) continue to accumulate Bitcoin at "unprecedented levels," with the total balance of this group reaching a monthly all-time high of 391,000 BTC earlier this week. In addition, the total market capitalization of stablecoins has surged to a record high of $165 billion, a historically bullish signal that indicates increased liquidity in the cryptocurrency market, which typically leads to higher prices.
