Bitcoin Apparent Demand Turns Negative as Market Faces New Pressure

• Bitcoin’s Apparent Demand has turned negative as new buyers fail to absorb pressure from miners and long-term holders.
• Selling by long-term holders suggests a weakening market and potential short-term vulnerability.

In the past few days, there has been a pretty glaring warning from on-chain analysis shared by CryptoQuant’s Crazzyblockk. He revealed that Apparent Demand for Bitcoin has returned to negative.

What does that mean? Demand from new buyers is unable to withstand the supply pressure coming from two sides at once: miners who continue to release new coins, and long-term holders (LTHs) who are starting to cash out their old deposits.

Source: CryptoQuant

This condition puts the market in a vulnerable situation. When coins from two main sources continue to flow into the market and are not balanced by new purchases, selling pressure builds up.

If we compare it, it’s like a supermarket with an abundance of goods, but fewer buyers. What happens next is usually not good news. Interestingly, this drop in demand is not the only signal that has made many market players wary.

Bitcoin Derivatives Activity Also Slow

Data from CoinGlass shows a marked shift in Bitcoin derivatives activity in the last 24 hours. Futures trading volume plunged by 58.14%, leaving a transaction value of around $21.71 billion. This is a sign that market players seem to be taking a step back, perhaps considering their next move, or waiting for a clearer signal.

Source: CoinGlass

However, while the volume dropped drastically, the total Open Interest actually rose slightly by 0.17% to $71.54 billion. What does it mean? Traders have not closed their positions, both optimistic and pessimistic. Market expectations are still divided, and many choose to hold on while waiting for the wind to turn.

Furthermore, Bitcoin options volume also fell sharply. The 59.05% drop saw it shrink to $1.18 billion. In fact, options are usually the mainstay of traders for a more flexible hedging strategy. If interest in this product also drops, it means that the market is again showing signs of being cautious.

As of press time, BTC is trading at about $107,711.68, up 0.32% over the last 24 hours and 4.98% over the last 7 days.

Strategy and Whale Movements Also Need to be Considered

On the other hand, there is no less interesting news from large holders, where Strategy is reported to have just offloaded 4,000 BTC to the exchange. This step could indicate a change in their long-term approach to Bitcoin. Usually they are known as accumulative entities. So when they start offloading, it is natural for market players to become tense.

Not only that, the inflow of whales to Binance has also increased. This could be a signal that some big players are reacting quickly to the situation. Some interpret this as preparation for cheap buying, while others suspect they are ready to increase selling pressure.

With all these variables—decreasing demand, sluggish derivative participation, and selling from big players—the Bitcoin market currently feels fragile. Even if the price does rise, pressure from the supply side could easily cause it to fail to survive.

So for those of you who are watching the market, maybe now is not the time to be too aggressive. Sometimes, waiting can be the wisest decision.