Bitcoin Surges by 6.5%: Potential Factors Boosting Further Growth Amidst Decreasing Market Demand
Bitcoin Market Update
Hey folks, let's chat about the latest happenings in the Bitcoin market!
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Over the past 24 hours, Bitcoin (BTC) has experienced a moderate surge. The digital coin is currently trading at around $93,684, representing a 6.54% increase.
However, despite this growth, market demand remains low, and liquidity flow is weak. CryptoQuant's analysis indicates that Bitcoin's demand in the spot market has dropped significantly by 146,000 BTC, equivalent to a $13 billion decline.
Institutional Investors' Waning Interest
Institutional demand for Bitcoin has seen a sluggish flow since late March 2025. U.S. Bitcoin ETFs have reported minimal net purchases, with daily inflows ranging from -5,000 BTC to +3,000 BTC. This stands in stark contrast to the 8,000+ BTC daily inflows observed during the bullish phase of late 2024.
Large Holders' Reduced Accumulation
Large holders, or whales, have shown signs of reduced confidence, significantly cutting their accumulation rate. In late March, the rate stood at 2.7%, but it has now dropped to just 0.4% by April 2025. Additionally, Q1 2025 saw 178,000 BTC sold by long-term holders, causing a considerable supply expansion.
Liquidity Growth Constraints
Despite depleting Bitcoin reserves on exchanges down to 2018 levels, liquidity growth has been unable to match historical bull market growth rates. To add to the complications, $4.8 billion exited Bitcoin ETFs in Q1 2025, weakening market momentum and reducing trading depth.
Market Impact
The combination of these factors has resulted in a market environment where supply overshadows demand, despite corporate buying announcements. Current Bitcoin faces significant resistance around $91,000–$92,000, and demand momentum has dropped to its lowest level since October 2024.
Fresh Supply Offering Hope
On a positive note, a staggering $1 billion in USDT, a stablecoin widely used in the crypto market, has been minted in the past 24 hours. This addition may serve as a catalyst for market interest, potentially fueling a renewed bullish run.
Stay tuned for more updates as the market evolves!
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- Despite Bitcoin's recent moderate surge in the market, the digital coin is still trading at a comparatively weak average price of $93,684, with low market demand and weak liquidity flow.
- Recent analysis indicates that Bitcoin's demand in the spot market has dropped significantly, with a decline of 146,000 BTC and a $13 billion drop in value.
- Institutional demand for Bitcoin has waned since late March 2025, with minimal net purchases and daily inflows ranging from -5,000 BTC to +3,000 BTC, compared to the over 8,000 BTC daily inflows during the bullish phase of late 2024.
- Large holders, or whales, have shown signs of reduced confidence, significantly cutting their accumulation rate from 2.7% in late March to just 0.4% as of April 2025, with Q1 2025 seeing 178,000 BTC sold by long-term holders.
- The current Bitcoin market environment is characterized by a supply overshadowing demand, despite corporate buying announcements, due in part to liquidity growth being unable to match historical bull market growth rates.
- To potentially offset these challenges, a significant $1 billion in USDT, a stablecoin commonly used in the crypto market, has been minted in the past 24 hours, which may serve as a catalyst for increased market interest and a renewed bullish run.
