CryptoQuant Analyst Answered: This Is Why Bitcoin Price Is Falling! - Coin Newsletter

As the downward movements in the price of Bitcoin (BTC) continue, analysts shared an analysis that reveals the main reasons for this.

While the price of Bitcoin has been on a downward trend in recent days, weak spot demand and short (kısa) position pressure in futures stand out as the main reasons for this decline. According to data from CryptoQuant analyst Julio Moreno, Bitcoin's spot demand growth is experiencing its biggest contraction since July 2024.

In the cryptocurrency market, the price of Bitcoin has entered a downtrend that has caught the attention of investors. According to the analysis, this decline is due to the contraction of demand in the spot market and the behavior of traders in the futures markets. According to Moreno, demand for Bitcoin in the spot market has fallen to its lowest levels in the last eight months. This means that there are fewer buyers entering the market and existing investors are turning to sell their holdings.

In the futures market, the increase in short positions is noteworthy. Traders often try to make a profit by opening short positions in anticipation of a price decline. According to the latest data, it is observed that short positions dominate in the futures market, and long (uzun) positions make profit realization. This, in turn, increases the downward pressure on the market.

This decline in the price of Bitcoin reveals a picture that contradicts the increasing spot ETF inflows and rising price expectations, especially in the recent period. However, Moreno notes that if the decline in spot demand continues, the downward trend in the price of Bitcoin could continue.