- Bitcoin’s price correction ties to a slowdown in “apparent demand,” per CryptoQuant data.
- ETF inflows impact prices indirectly via arbitrage, not direct buying, per 2024 analysis.
- On-chain metrics like apparent demand predict corrections with 78% accuracy.
Bitcoin’s recent price stagnation is not just about technical resistance or broader macroeconomic factors—it’s about demand, plain and simple. According to Julio Moreno, Head of Research at CryptoQuant, the current pause and correction in Bitcoin’s price can be attributed to a slowdown in overall demand growth, including key purchases from exchange-traded funds (ETFs) and corporate entities such as MicroStrategy.
In a post shared on X, Moreno highlighted how apparent on-chain demand metrics align closely with ETF inflows and company purchases, offering a transparent view of market behavior. “It’s the demand, stupid,” Moreno wrote, pointing out that without sustained growth in demand, even strong narratives around Bitcoin struggle to push prices higher.
ETF and Corporate Purchases Reflect the Shift
The second chart from CryptoQuant—“Bitcoin: Demand Growth (30-day, # of Bitcoin)”—provides deeper insights into how demand has shifted over time. ETF inflows (represented in pink) and strategy-based purchases (in gray) reveal periods of strong accumulation. Yet, the latest data indicates that both sources of demand have slowed, coinciding with Bitcoin’s inability to break decisively above recent resistance levels.
Moreno emphasized that these on-chain metrics serve as a real-time reflection of what’s happening in ETF flows and corporate strategies. “It’s remarkable how a simple on-chain metric as apparent demand reflects ETF and company’s purchases,” he noted.
This correlation underscores a crucial point for investors: Bitcoin’s market dynamics are increasingly intertwined with institutional behaviors. While retail participation remains a factor, institutional flows now play a more dominant role in shaping both price action and market sentiment.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
