King crypto money The currency has fallen below $59,000 again and the crab markets continue to be challenging for investors. Rapid declines have rapid returns, but the gradual pullbacks that have been going on for months are wearing investors out. So what is the reason for this environment that also undermines risk appetite? What has changed since April? Here is the answer.
Why Aren’t Cryptocurrencies Rising?
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The company’s CEO Ki Young has been writing at every opportunity about the long-term bullish sentiment and the potential for short-term volatility, but the recent, frustratingly long period of weakness has been due to a lack of BTC demand.
According to the analysis, the apparent demand is calculated by the difference between the daily total Bitcoin block subsidy and the daily change in the amount of Bitcoin that has remained constant for a year or more. And the demand is low. It has declined from $70,000 in April to the big drop in August. The demand in the ETF channel has also fallen, pulling down the overall demand. From 12,000 BTC in March, the ETF channel BTC demand dropped to 1,300 BTC between August 11 and 17.
Apparent demand turned into negative growth of 25 thousand from 496 thousand in 30 days.
Lack of Bitcoin Demand
Coinbase BTC price The premium has also decreased from 0.25% when the ETF was first launched to 0.01% today. In other words, the strong demand seen at the beginning of the year in the US channel has weakened over time, weakened and reached its current point. The general negativity in volume is already felt in daily volume data.
Of course, it is normal for interest to wane in the summer months, but it is known that dozens of negative events following ETF approvals fed this negativity. So what should happen? We should see demand revive in the US channel. But how? Could interest rate cuts be a trigger at this point? Or Trump finally winning the elections after his outrageous promises for crypto? Maybe.
But in any case, most experts expect big moves in the last quarter.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
