Bitcoin at the Weakest Point of the Year: What Does It Mean for the Price? - Coin Newsletter

As Bitcoin's (BTC) demand falls to its lowest level of the year, a decrease in investors' risk appetite could have an impact on the price.

According to the CryptoQuant analyst, Bitcoin demand has fallen to its lowest level of the year, indicating that investors are acting more cautiously. While the downward trend that has been going on since December continues, the transition of demand into negative territory reveals a significant change in the risk perception of the market.

According to data from CryptoQuant, Bitcoin's apparent demand (apparent demand) is calculated based on the change of daily block rewards and supply that has not moved for at least a year. When this metric drops below zero, it indicates that the market's appetite for buying Bitcoin is decreasing. While there has been a steady decline in this indicator in recent months, it is stated that by March, demand has moved into negative territory. According to the CryptoQuant analyst, this weakening of demand indicates that investors are turning to less risky assets.

According to the CryptoQuant analyst, demand for Bitcoin started to decline from December 2023 and is now at its lowest level of the year. It is stated that this decline has accelerated, especially in recent weeks, and investors prefer to stay in more cash due to market uncertainties. Global economic uncertainties and upcoming macroeconomic developments may cause investors to move away from cryptocurrencies.

According to the CryptoQuant analyst, Bitcoin price could test critical support levels if the demand decline continues. However, in the long run, factors such as Bitcoin's supply dynamics and institutional demand could reduce the pressure on the price.