Bitcoin Demand Is Weakening — Key Factors and Market Implications

As Bitcoin attempts to recover from geopolitical tensions in the Middle East, analysts report a noticeable decline in investor interest. On-chain analytics firm CryptoQuant indicates that the BTC market is entering a phase of demand deceleration

The recent price surge to 112 thousand US dollars was driven by strong buying activity. However, current demand momentum has turned negative, reaching a record low of minus 2 million BTC. This reflects a weakening investor sentiment across the market

Although spot demand continues to grow, the rate of growth has slowed significantly. Over the past 30 days, net demand increased by 118 thousand BTC, compared to 228 thousand at the end of May. The metric is now below its 30-day moving average, signaling reduced buying pressure

Institutional investors and large holders are showing declining activity. Whale balance growth has decreased from 3.9 to 1.7 percent month over month. Daily purchases through spot ETFs dropped from 9700 BTC on April 23 to 3300 BTC in recent days

Another contributing factor is the reduced activity from new market entrants. The total BTC held by short-term investors has decreased from 5.3 million to 4.5 million coins, reflecting a broader retreat from the retail segment

Futures markets are also showing signs of reversal. After BTC reached 110 thousand dollars, many investors took profits and opened short positions. This trend intensified after prices fell below 105 thousand amid heightened tensions between Israel and Iran

Market Outlook

For Bitcoin to achieve sustained growth, renewed interest from institutional investors, ETFs, and new buyers is essential. Without such demand, BTC may fall below the psychological threshold of 100 thousand dollars and test support near 92 thousand. A further decline could lead to levels as low as 81 thousand dollars — the lower boundary of realized trader value based on blockchain data

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