Analyst Highlights Bitcoin’s Weakening Demand: Is the Market Turning Bearish?

  • Weak demand signals a possible prolonged bearish trend for Bitcoin.
  • Long-term holders remain optimistic despite recent price declines and volatility.

Bitcoin’s demand has taken a hit in 2025 as recent data shows investor interest is reducing. Darkfost, a well-known analyst on X, pointed out the current weakness by posting a chart showing Bitcoin’s new supply vs. over 1 year of inactive supply. This ratio has gone negative, which means demand is weakening. As of the latest report, Bitcoin is $84,252.8, down 0.53%. Despite the bearish signs, long-term Bitcoin holders are still accumulating, going against the trend.

Weak Demand Means Possible Market Decline

Darkfost’s analysis emphasizes the importance of the supply-demand ratio in measuring Bitcoin’s market health. When the ratio goes below 0, there is negative demand, which we’ve seen since December 2024. The downward trend in this ratio means Bitcoin may be in a prolonged bearish period. Negative demand phases usually coincide with price drops, so Bitcoin’s price may drop more if the trend continues. Darkfost advised investors to be cautious, as the weakening demand is a considerable risk to the cryptocurrency.

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Bitcoin ETF Flow Source: Farside

Bitcoin has been highly volatile, down more than 15% in the past month. Currently, at $82,024.8, Bitcoin is 32.39% below its all-time high. A look at recent ETF flows shows a $45.7 million inflow into Bitcoin ETFs on March 13, 2025, which is bullish. However, this is in contrast to the outflows from Grayscale and Bitwise. The current bearish trend and mixed flows mean Bitcoin’s price may still be under pressure in the short term.

Long-term holders are not bothered by price drops.

Despite the decrease in demand, the recent price action does not faze Bitcoin holders in the long term. Analyst Ali Martinez reported that they have bought Bitcoin and added more than 131,000 BTC to their wallets in the last 30 days. This accumulation, especially from late February to early March, shows they believe in Bitcoin’s long-term even when the price fluctuates.

Martinez also pointed out that 36,000 BTC were traded on showroom exchanges in 96 hours, which shows growing confidence in the long-term future. This shows that long-term investors do not worry about short-term price drops and are optimistic about Bitcoin’s rebound.

As the market adjusts to changing investor sentiment and macroeconomic factors, Coincryptonews recently reported that Bitcoin’s price is the meter. The market will watch key support levels such as $74,000 to see if Bitcoin can hold or drop further.

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.

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