CryptoQuant: Bitcoin demand indicators weaken, triggering short-term concerns; ETF daily purchase volume significantly decreases

The latest report from encryption analysis company CryptoQuant shows that the demand index for Bitcoin has significantly slowed since early April, even falling into negative values this month, sparking market concerns about the short-term prospects of Bitcoin.

Despite launching multiple Bitcoin spot ETFs in January this year, their popularity is cooling down. Data shows that the daily purchase volume of Bitcoin spot ETFs plummeted from 12,500 coins in March (when the price of Bitcoin exceeded $70,000) to just 1,300 last week. Since its launch, the Bitcoin ETF has attracted a net inflow of $17.5 billion but growth has noticeably slowed down. The total holdings growth of large-scale bitcoin investors also dropped from 6% monthly in March to currently 1%.

However, there are still positive factors in the market. Long-term holders (wallets held for more than six months) continue to accumulate Bitcoins at record levels and their total balance reached a new monthly high this week at 391,000 BTC. Meanwhile, stablecoin's total market value climbed to a historic high of $165 billion which usually indicates increased liquidity in crypto markets and could potentially trigger price increases.