Key facts
- Bitcoin demand has contracted significantly over the past month.
- The 30-day change in total Bitcoin demand is -501,000 BTC.
- This contraction pace is comparable to the period following the Terra/LUNA collapse.
- Spot demand contracted during the recent rally, while futures demand increased.
- Bitcoin's price has fallen to $63,200, its lowest level since February.
On-chain data indicates that Bitcoin's total demand has contracted sharply over the past month, reaching a pace comparable to the period following the Terra/LUNA collapse in May 2022. Julio Moreno, head of research at CryptoQuant, highlighted that the 30-day change in Bitcoin demand is now -501,000 BTC. This metric represents the combined flow of Bitcoin into spot and futures markets. During the price surge in April and early May, demand in derivatives markets increased while spot demand actually contracted. Historically, sustainable price increases have required simultaneous demand growth in both spot and futures markets. The recent rally was primarily fueled by speculative activity in derivatives, which has now reversed, aligning with the spot market's contraction trend. The current demand contraction is the lowest it has been since May 2022, though it has not yet reached the -559,000 BTC mark seen during the Terra/LUNA crisis. Following this price reversal, Bitcoin has dropped to $63,200, its lowest point since February.