Bitcoin Demand Still Positive Even As Price Faces Volatility

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As robust volatility persists in the cryptocurrency market, Bitcoin, the leading digital asset, has witnessed a notable pullback to the $114,000 price mark. BTC’s price may have declined to key support levels, but investors continue to display resilience and optimism, evidenced by sustained positive demand toward the crypto king.

Volatility Fails To Derail Bitcoin Demand

After thorough research of the Bitcoin market dynamics, Darkfost, a verified author and market expert, has outlined a bullish behavior among investors. In spite of recent price fluctuations shaking broader market sentiment, demand for the flagship asset remains firmly intact.

Instead of causing widespread sell-offs, the volatility seems to be enhancing Bitcoin’s allure as a decentralized, scarce asset in the cryptocurrency space. Such a development implies that confidence in BTC’s long-term value potential has remained constant. Darkfost’s analysis of BTC’s demand aims at addressing whether investors, especially short-term holders, will continue to sell at a loss or hold underwater positions. 

In the post shared on X, the expert began by pointing to Bitcoin’s Apparent Demand, a metric that contrasts newly issued BTC with supply that has been dormant for more than 1 year. It is worth noting that when this metric drops below zero, it indicates a decline in demand, while when it rises above zero, it implies a positive demand.

Data shows that the metric has now risen well above zero, which suggests a growing demand among investors. Darkfost noted that demand is still clearly positive, as evidenced by the 160,000 BTC that has been accumulated over the last 30 days.

The next key metric examined by the market expert is the Bitcoin Demand from Accumulator Addresses. Specifically, this measure monitors wallet addresses that have solely purchased BTC without selling any, providing insights about demand and holding conviction.

According to the expert, the average BTC purchased by these accumulator addresses has grown by over 50,000 BTC in the past 30 days. This growth signals a strong and sustained buying behavior from these investors within the time frame.

A Sharp Drop In BTC OTC Desks

Darkfost has also drawn attention to BTC OTC Desks. This metric covers a longer-term outlook, reflecting a distinct type of demand that is off-chain and has a limited short-term effect on prices, which is currently displaying a waning demand in the long term.

Presently, the expert highlighted that the number of Bitcoins held by OTC desks has steadily declined significantly. Data shows that there are 145,000 BTC available today on OTC desks, compared to roughly 550,000 BTC in September 2021.

Even though demand in the long term has dropped sharply, Darkfost claims that the overall picture remains positive. In the meantime, demand-side indicators show no signs of concern despite recent price volatility.

Featured image from Pixabay, chart from Tradingview.com

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