Crypto analysis platform CryptoQuant has warned that demand for Bitcoin is weakening, suggesting that the current outlook could put downward pressure on the price.
In data shared on its social media account, the company stated that there have been three major increases in demand in the spot market during this cycle, but the latest wave of increases is now coming to an end.
According to CryptoQuant’s analysis, Bitcoin demand has fallen below its long-term trend level since the beginning of October. This indicates a decrease in the number of new buyers entering the market and that existing investors are acting more cautiously. Experts state that if this weakening in demand continues, the price may struggle to maintain its current levels.
The analysis also highlighted that previous demand increases were generally supported by strong price increases, but the same effect has not been observed recently. This is interpreted as the market possibly reaching saturation and the risk of a correction increasing in the short term. On-chain data indicates a slowdown in new investor inflows and volatile trading volumes.
Market experts point out that macroeconomic uncertainties, interest rate policies, and changes in global risk appetite also affect crypto assets. CryptoQuant states that investors should prioritize risk management in the current environment and be prepared for sudden price movements.
While expectations for Bitcoin’s medium- and long-term outlook remain unchanged, it is noted that weakness in demand in the short term could increase market volatility. Therefore, investors are advised to closely monitor on-chain indicators and market sentiment.
*This is not investment advice.
