The demand contraction for Bitcoin has somewhat eased, but analysis suggests it is still insufficient to transition to a rebound phase.
According to the recent weekly report by on-chain crypto analysis firm CryptoQuant, Bitcoin's nominal demand decreased by 146,000 BTC over the past 30 days. While this is less severe than the maximum decrease of 311,000 BTC recorded on March 27th, the demand momentum continues to deteriorate. The demand momentum, which indicates how much new investors' purchases have increased compared to existing holders, has decreased by 642,000 BTC, marking its worst level since October 2024.
The demand slowdown is also confirmed by the reduced inflows of US-based Bitcoin spot ETFs. The report noted that "daily net buying for US ETFs has been stagnant between -5,000 BTC and +3,000 BTC since late March" and "this is significantly lower compared to the period of daily net buying over 8,000 BTC in November-December 2024". In 2025 so far, US ETFs have net sold 10,000 BTC, whereas in the same period of 2024, they had net bought 208,000 BTC.
The increase in USDT market capitalization, which indicates market liquidity, is also minimal. Over the past 60 days, USDT's market cap increased by $290 million, which is below the 30-day moving average trend. Considering that Bitcoin price typically rises when market cap growth exceeds $500 million and surpasses the moving average, it is difficult to expect a bullish reversal with the current liquidity expansion.
Bitcoin price is currently facing resistance in the $91,000-$92,000 range. This range coincides with traders' on-chain realized price and acts as a resistance line when market sentiment is bearish (bull score ≤ 40). The current situation falls under such a bearish phase.
CryptoQuant emphasized that "for prices to continue rising, recovery of Bitcoin demand, demand momentum, and net buying by US ETFs are essential".
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