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A report published Tuesday by CryptoQuant analysts said demand showed signs of stabilizing but would need to increase significantly in the fourth quarter to sustain higher prices.
Since July, nominal demand for Bitcoin, calculated by CryptoQuant as the difference between the total daily Bitcoin block subsidy and the daily change in Bitcoin volume, which has remained unchanged for more than a year, has fluctuated between a monthly net loss of $23,000 to $1,000. You won 69,000 Bitcoin. However, volatility decreased in September as demand steadily increased.
Nonetheless, analysts noted that September’s demand increase alone was not enough to trigger sustained price increases. “For comparison, apparent demand for bitcoin increased to 496,000 bitcoins in April when the price hovered around $70,000. There appears to be a lot of room for demand to increase in the fourth quarter,” the analysts said.
The report also highlighted that the behavior of Bitcoin holders in early 2024 reflects patterns seen during past halving cycles in 2016 and 2020. Long-term holders sold their Bitcoin to new buyers at the beginning of the year, driving increased demand, but this trend cooled during 2016. summer.
“If past trends continue, demand growth will resume, potentially boosting near-term supply,” the analysts said.
Bitcoin’s apparent demand increased in September and was less volatile. Image: CryptoQuant.
Spot Bitcoin ETF Demand Increases in September
One area that is showing new strength is the U.S. spot Bitcoin exchange-traded fund (ETF). September saw a shift from net selling of 5,000 Bitcoin at the beginning of the month to net buying of 7,000 Bitcoin on September 30, the highest daily purchase volume since July.
“Spot ETFs helped drive the price of Bitcoin to record highs, purchasing an average of nearly 9,000 bitcoins per day in the first quarter of 2024. If ETF demand continues to accelerate, the impact of higher prices in the fourth quarter of 2024 could bring,” analysts said.
However, despite the positive trend, spot Bitcoin ETFs saw daily net outflows on Tuesday for the first time since September 3, ending an eight-day streak of positive flows. BlackRock’s IBIT, the largest spot Bitcoin ETF, was the only fund among the top 12 funds to record positive flows yesterday, recording $40.84 million in investments.
According to The Block’s Bitcoin price page, the price of Bitcoin has risen about 1.2% over the past hour and was sitting at around $62,139 at 12:15 a.m. ET.
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